Correlation Between Baloise Holding and WisdomTree Equity
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and WisdomTree Equity 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 WisdomTree Equity 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 WisdomTree Equity Income, you can compare the effects of market volatilities on Baloise Holding and WisdomTree Equity 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 WisdomTree Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and WisdomTree Equity.
Diversification Opportunities for Baloise Holding and WisdomTree Equity
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baloise and WisdomTree is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and WisdomTree Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Equity Income 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 WisdomTree Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Equity Income has no effect on the direction of Baloise Holding i.e., Baloise Holding and WisdomTree Equity go up and down completely randomly.
Pair Corralation between Baloise Holding and WisdomTree Equity
Assuming the 90 days trading horizon Baloise Holding AG is expected to under-perform the WisdomTree Equity. In addition to that, Baloise Holding is 1.45 times more volatile than WisdomTree Equity Income. It trades about -0.18 of its total potential returns per unit of risk. WisdomTree Equity Income is currently generating about 0.15 per unit of volatility. If you would invest 3,049 in WisdomTree Equity Income on September 13, 2024 and sell it today you would earn a total of 116.00 from holding WisdomTree Equity Income or generate 3.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baloise Holding AG vs. WisdomTree Equity Income
Performance |
| Timeline |
| Baloise Holding AG |
| WisdomTree Equity Income |
Baloise Holding and WisdomTree Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and WisdomTree Equity
The main advantage of trading using opposite Baloise Holding and WisdomTree Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, WisdomTree Equity 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 WisdomTree Equity will offset losses from the drop in WisdomTree Equity'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 |
| WisdomTree Equity vs. Baloise Holding AG | WisdomTree Equity vs. 21Shares Polkadot ETP | WisdomTree Equity vs. UBS ETF MSCI | WisdomTree Equity 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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