Correlation Between Baloise Holding and Komax Holding
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and Komax Holding 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 Komax Holding 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 Komax Holding AG, you can compare the effects of market volatilities on Baloise Holding and Komax Holding 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 Komax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and Komax Holding.
Diversification Opportunities for Baloise Holding and Komax Holding
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baloise and Komax is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and Komax Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komax Holding AG 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 Komax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komax Holding AG has no effect on the direction of Baloise Holding i.e., Baloise Holding and Komax Holding go up and down completely randomly.
Pair Corralation between Baloise Holding and Komax Holding
Assuming the 90 days trading horizon Baloise Holding AG is expected to under-perform the Komax Holding. But the stock apears to be less risky and, when comparing its historical volatility, Baloise Holding AG is 1.5 times less risky than Komax Holding. The stock trades about -0.2 of its potential returns per unit of risk. The Komax Holding AG is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 11,460 in Komax Holding AG on August 28, 2024 and sell it today you would lose (420.00) from holding Komax Holding AG or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baloise Holding AG vs. Komax Holding AG
Performance |
| Timeline |
| Baloise Holding AG |
| Komax Holding AG |
Baloise Holding and Komax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and Komax Holding
The main advantage of trading using opposite Baloise Holding and Komax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, Komax Holding 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 Komax Holding will offset losses from the drop in Komax Holding'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 |
| Komax Holding vs. Helvetia Holding AG | Komax Holding vs. Swiss Life Holding | Komax Holding vs. VAT Group 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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