Correlation Between Baloise Holding and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and Amundi Index at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Baloise Holding and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baloise Holding AG and Amundi Index Solutions, you can compare the effects of market volatilities on Baloise Holding and Amundi Index and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Baloise Holding with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and Amundi Index.
Diversification Opportunities for Baloise Holding and Amundi Index
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baloise and Amundi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and Baloise Holding is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Baloise Holding AG are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Baloise Holding i.e., Baloise Holding and Amundi Index go up and down completely randomly.
Pair Corralation between Baloise Holding and Amundi Index
Assuming the 90 days trading horizon Baloise Holding AG is expected to generate 0.29 times more return on investment than Amundi Index. However, Baloise Holding AG is 3.47 times less risky than Amundi Index. It trades about -0.39 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about -0.36 per unit of risk. If you would invest 16,850 in Baloise Holding AG on September 23, 2024 and sell it today you would lose (630.00) from holding Baloise Holding AG or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Baloise Holding AG vs. Amundi Index Solutions
Performance |
| Timeline |
| Baloise Holding AG |
| Amundi Index Solutions |
Baloise Holding and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and Amundi Index
The main advantage of trading using opposite Baloise Holding and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, Amundi Index can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amundi Index will offset losses from the drop in Amundi Index's long position.| Baloise Holding vs. Swiss Life Holding | Baloise Holding vs. Helvetia Holding AG | Baloise Holding vs. Swisscom AG | Baloise Holding vs. Zurich Insurance Group |
| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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