Correlation Between Baloise Holding and IShares Core
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and IShares Core 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 IShares Core 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 iShares Core MSCI, you can compare the effects of market volatilities on Baloise Holding and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and IShares Core.
Diversification Opportunities for Baloise Holding and IShares Core
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Baloise and IShares is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and iShares Core MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core MSCI 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core MSCI has no effect on the direction of Baloise Holding i.e., Baloise Holding and IShares Core go up and down completely randomly.
Pair Corralation between Baloise Holding and IShares Core
Assuming the 90 days trading horizon Baloise Holding AG is expected to generate 0.94 times more return on investment than IShares Core. However, Baloise Holding AG is 1.07 times less risky than IShares Core. It trades about 0.07 of its potential returns per unit of risk. iShares Core MSCI is currently generating about 0.03 per unit of risk. If you would invest 15,420 in Baloise Holding AG on September 1, 2024 and sell it today you would earn a total of 1,320 from holding Baloise Holding AG or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baloise Holding AG vs. iShares Core MSCI
Performance |
| Timeline |
| Baloise Holding AG |
| iShares Core MSCI |
Baloise Holding and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and IShares Core
The main advantage of trading using opposite Baloise Holding and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core'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 |
| IShares Core vs. iShares Corp Bond | IShares Core vs. iShares Emerging Asia | IShares Core vs. iShares MSCI Global | IShares Core vs. iShares VII PLC |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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