Correlation Between Baloise Holding and IShares Asia
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and IShares Asia 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 Asia 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 Asia Pacific, you can compare the effects of market volatilities on Baloise Holding and IShares Asia 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 Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and IShares Asia.
Diversification Opportunities for Baloise Holding and IShares Asia
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Baloise and IShares is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and iShares Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Asia Pacific 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 Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Asia Pacific has no effect on the direction of Baloise Holding i.e., Baloise Holding and IShares Asia go up and down completely randomly.
Pair Corralation between Baloise Holding and IShares Asia
Assuming the 90 days trading horizon Baloise Holding AG is expected to generate 1.16 times more return on investment than IShares Asia. However, Baloise Holding is 1.16 times more volatile than iShares Asia Pacific. It trades about 0.04 of its potential returns per unit of risk. iShares Asia Pacific is currently generating about 0.03 per unit of risk. If you would invest 13,561 in Baloise Holding AG on October 15, 2024 and sell it today you would earn a total of 2,919 from holding Baloise Holding AG or generate 21.52% 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. iShares Asia Pacific
Performance |
| Timeline |
| Baloise Holding AG |
| iShares Asia Pacific |
Baloise Holding and IShares Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and IShares Asia
The main advantage of trading using opposite Baloise Holding and IShares Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, IShares Asia 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 Asia will offset losses from the drop in IShares Asia'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 Asia vs. iShares Corp Bond | IShares Asia vs. iShares Emerging Asia | IShares Asia vs. iShares MSCI Global | IShares Asia 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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