Correlation Between Baloise Holding and IShares SP
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and IShares SP 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 SP 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 SP 500, you can compare the effects of market volatilities on Baloise Holding and IShares SP 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 SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and IShares SP.
Diversification Opportunities for Baloise Holding and IShares SP
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baloise and IShares is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and iShares SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP 500 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP 500 has no effect on the direction of Baloise Holding i.e., Baloise Holding and IShares SP go up and down completely randomly.
Pair Corralation between Baloise Holding and IShares SP
Assuming the 90 days trading horizon Baloise Holding AG is expected to under-perform the IShares SP. In addition to that, Baloise Holding is 1.3 times more volatile than iShares SP 500. It trades about -0.17 of its total potential returns per unit of risk. iShares SP 500 is currently generating about 0.34 per unit of volatility. If you would invest 5,843 in iShares SP 500 on September 19, 2024 and sell it today you would earn a total of 173.00 from holding iShares SP 500 or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baloise Holding AG vs. iShares SP 500
Performance |
| Timeline |
| Baloise Holding AG |
| iShares SP 500 |
Baloise Holding and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and IShares SP
The main advantage of trading using opposite Baloise Holding and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, IShares SP 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 SP will offset losses from the drop in IShares SP'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 SP vs. Baloise Holding AG | IShares SP vs. 21Shares Polkadot ETP | IShares SP vs. UBS ETF MSCI | IShares SP 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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