Correlation Between Baloise Holding and Amundi MSCI
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and Amundi MSCI 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 MSCI 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 MSCI Emerging, you can compare the effects of market volatilities on Baloise Holding and Amundi MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and Amundi MSCI.
Diversification Opportunities for Baloise Holding and Amundi MSCI
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baloise and Amundi is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and Amundi MSCI Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI Emerging 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi MSCI Emerging has no effect on the direction of Baloise Holding i.e., Baloise Holding and Amundi MSCI go up and down completely randomly.
Pair Corralation between Baloise Holding and Amundi MSCI
Assuming the 90 days trading horizon Baloise Holding AG is expected to generate 0.75 times more return on investment than Amundi MSCI. However, Baloise Holding AG is 1.33 times less risky than Amundi MSCI. It trades about -0.06 of its potential returns per unit of risk. Amundi MSCI Emerging is currently generating about -0.08 per unit of risk. If you would invest 16,430 in Baloise Holding AG on September 14, 2024 and sell it today you would lose (130.00) from holding Baloise Holding AG or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baloise Holding AG vs. Amundi MSCI Emerging
Performance |
| Timeline |
| Baloise Holding AG |
| Amundi MSCI Emerging |
Baloise Holding and Amundi MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and Amundi MSCI
The main advantage of trading using opposite Baloise Holding and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, Amundi MSCI 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 MSCI will offset losses from the drop in Amundi MSCI'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 MSCI vs. Baloise Holding AG | Amundi MSCI vs. 21Shares Polkadot ETP | Amundi MSCI vs. UBS ETF MSCI | Amundi MSCI vs. BB Biotech AG |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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