Correlation Between Baloise Holding and Lyxor MSCI
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and Lyxor 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 Lyxor 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 Lyxor MSCI China, you can compare the effects of market volatilities on Baloise Holding and Lyxor 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 Lyxor MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and Lyxor MSCI.
Diversification Opportunities for Baloise Holding and Lyxor MSCI
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baloise and Lyxor is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and Lyxor MSCI China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor MSCI China 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 Lyxor MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor MSCI China has no effect on the direction of Baloise Holding i.e., Baloise Holding and Lyxor MSCI go up and down completely randomly.
Pair Corralation between Baloise Holding and Lyxor MSCI
Assuming the 90 days trading horizon Baloise Holding AG is expected to generate 0.53 times more return on investment than Lyxor MSCI. However, Baloise Holding AG is 1.89 times less risky than Lyxor MSCI. It trades about 0.04 of its potential returns per unit of risk. Lyxor MSCI China is currently generating about -0.01 per unit of risk. If you would invest 13,624 in Baloise Holding AG on October 7, 2024 and sell it today you would earn a total of 3,096 from holding Baloise Holding AG or generate 22.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.06% |
| Values | Daily Returns |
Baloise Holding AG vs. Lyxor MSCI China
Performance |
| Timeline |
| Baloise Holding AG |
| Lyxor MSCI China |
Baloise Holding and Lyxor MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and Lyxor MSCI
The main advantage of trading using opposite Baloise Holding and Lyxor MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, Lyxor 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 Lyxor MSCI will offset losses from the drop in Lyxor 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 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |