Correlation Between Baloise Holding and PIMCO Euro
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and PIMCO Euro 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 PIMCO Euro 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 PIMCO Euro Short, you can compare the effects of market volatilities on Baloise Holding and PIMCO Euro 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 PIMCO Euro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and PIMCO Euro.
Diversification Opportunities for Baloise Holding and PIMCO Euro
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baloise and PIMCO is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and PIMCO Euro Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Euro Short 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 PIMCO Euro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Euro Short has no effect on the direction of Baloise Holding i.e., Baloise Holding and PIMCO Euro go up and down completely randomly.
Pair Corralation between Baloise Holding and PIMCO Euro
Assuming the 90 days trading horizon Baloise Holding AG is expected to generate 42.15 times more return on investment than PIMCO Euro. However, Baloise Holding is 42.15 times more volatile than PIMCO Euro Short. It trades about 0.05 of its potential returns per unit of risk. PIMCO Euro Short is currently generating about 0.64 per unit of risk. If you would invest 12,958 in Baloise Holding AG on September 14, 2024 and sell it today you would earn a total of 3,342 from holding Baloise Holding AG or generate 25.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baloise Holding AG vs. PIMCO Euro Short
Performance |
| Timeline |
| Baloise Holding AG |
| PIMCO Euro Short |
Baloise Holding and PIMCO Euro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and PIMCO Euro
The main advantage of trading using opposite Baloise Holding and PIMCO Euro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, PIMCO Euro 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 PIMCO Euro will offset losses from the drop in PIMCO Euro'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 |
| PIMCO Euro vs. Baloise Holding AG | PIMCO Euro vs. 21Shares Polkadot ETP | PIMCO Euro vs. UBS ETF MSCI | PIMCO Euro 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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