Correlation Between Baloise Holding and Invesco MSCI
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and Invesco 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 Invesco 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 Invesco MSCI USA, you can compare the effects of market volatilities on Baloise Holding and Invesco 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 Invesco MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and Invesco MSCI.
Diversification Opportunities for Baloise Holding and Invesco MSCI
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baloise and Invesco is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and Invesco MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco MSCI USA 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco MSCI USA has no effect on the direction of Baloise Holding i.e., Baloise Holding and Invesco MSCI go up and down completely randomly.
Pair Corralation between Baloise Holding and Invesco MSCI
Assuming the 90 days trading horizon Baloise Holding is expected to generate 1.91 times less return on investment than Invesco MSCI. In addition to that, Baloise Holding is 1.33 times more volatile than Invesco MSCI USA. It trades about 0.05 of its total potential returns per unit of risk. Invesco MSCI USA is currently generating about 0.13 per unit of volatility. If you would invest 5,582 in Invesco MSCI USA on September 12, 2024 and sell it today you would earn a total of 3,599 from holding Invesco MSCI USA or generate 64.48% 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. Invesco MSCI USA
Performance |
| Timeline |
| Baloise Holding AG |
| Invesco MSCI USA |
Baloise Holding and Invesco MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and Invesco MSCI
The main advantage of trading using opposite Baloise Holding and Invesco MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, Invesco 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 Invesco MSCI will offset losses from the drop in Invesco 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 |
| Invesco MSCI vs. Baloise Holding AG | Invesco MSCI vs. 21Shares Polkadot ETP | Invesco MSCI vs. UBS ETF MSCI | Invesco 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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