Correlation Between Baloise Holding and IShares Emerging
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and IShares Emerging 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 Emerging 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 Emerging Asia, you can compare the effects of market volatilities on Baloise Holding and IShares Emerging 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 Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and IShares Emerging.
Diversification Opportunities for Baloise Holding and IShares Emerging
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baloise and IShares is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and iShares Emerging Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Emerging Asia 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 Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Emerging Asia has no effect on the direction of Baloise Holding i.e., Baloise Holding and IShares Emerging go up and down completely randomly.
Pair Corralation between Baloise Holding and IShares Emerging
Assuming the 90 days trading horizon Baloise Holding is expected to generate 1.86 times less return on investment than IShares Emerging. In addition to that, Baloise Holding is 2.39 times more volatile than iShares Emerging Asia. It trades about 0.06 of its total potential returns per unit of risk. iShares Emerging Asia is currently generating about 0.26 per unit of volatility. If you would invest 7,571 in iShares Emerging Asia on September 1, 2024 and sell it today you would earn a total of 129.00 from holding iShares Emerging Asia or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Baloise Holding AG vs. iShares Emerging Asia
Performance |
| Timeline |
| Baloise Holding AG |
| iShares Emerging Asia |
Baloise Holding and IShares Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and IShares Emerging
The main advantage of trading using opposite Baloise Holding and IShares Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, IShares Emerging 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 Emerging will offset losses from the drop in IShares Emerging'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 Emerging vs. iShares Core SP | IShares Emerging vs. iShares Core MSCI | IShares Emerging 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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