Correlation Between Baloise Holding and Invesco EQQQ
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and Invesco EQQQ 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 Invesco EQQQ 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 Invesco EQQQ NASDAQ 100, you can compare the effects of market volatilities on Baloise Holding and Invesco EQQQ 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 Invesco EQQQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and Invesco EQQQ.
Diversification Opportunities for Baloise Holding and Invesco EQQQ
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Baloise and Invesco is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and Invesco EQQQ NASDAQ 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco EQQQ NASDAQ 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 Invesco EQQQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco EQQQ NASDAQ has no effect on the direction of Baloise Holding i.e., Baloise Holding and Invesco EQQQ go up and down completely randomly.
Pair Corralation between Baloise Holding and Invesco EQQQ
Assuming the 90 days trading horizon Baloise Holding is expected to generate 2.09 times less return on investment than Invesco EQQQ. But when comparing it to its historical volatility, Baloise Holding AG is 1.07 times less risky than Invesco EQQQ. It trades about 0.06 of its potential returns per unit of risk. Invesco EQQQ NASDAQ 100 is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 19,536 in Invesco EQQQ NASDAQ 100 on September 1, 2024 and sell it today you would earn a total of 16,084 from holding Invesco EQQQ NASDAQ 100 or generate 82.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baloise Holding AG vs. Invesco EQQQ NASDAQ 100
Performance |
| Timeline |
| Baloise Holding AG |
| Invesco EQQQ NASDAQ |
Baloise Holding and Invesco EQQQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and Invesco EQQQ
The main advantage of trading using opposite Baloise Holding and Invesco EQQQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, Invesco EQQQ 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 Invesco EQQQ will offset losses from the drop in Invesco EQQQ'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 |
| Invesco EQQQ vs. iShares Core SP | Invesco EQQQ vs. iShares Core MSCI | Invesco EQQQ vs. Lyxor UCITS Stoxx |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |