Correlation Between Baloise Holding and SF Sustainable
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and SF Sustainable 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 SF Sustainable 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 SF Sustainable Property, you can compare the effects of market volatilities on Baloise Holding and SF Sustainable 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 SF Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and SF Sustainable.
Diversification Opportunities for Baloise Holding and SF Sustainable
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baloise and SFPF is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and SF Sustainable Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SF Sustainable Property 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 SF Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SF Sustainable Property has no effect on the direction of Baloise Holding i.e., Baloise Holding and SF Sustainable go up and down completely randomly.
Pair Corralation between Baloise Holding and SF Sustainable
Assuming the 90 days trading horizon Baloise Holding AG is expected to generate 0.98 times more return on investment than SF Sustainable. However, Baloise Holding AG is 1.02 times less risky than SF Sustainable. It trades about 0.12 of its potential returns per unit of risk. SF Sustainable Property is currently generating about 0.0 per unit of risk. If you would invest 16,410 in Baloise Holding AG on October 31, 2024 and sell it today you would earn a total of 310.00 from holding Baloise Holding AG or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baloise Holding AG vs. SF Sustainable Property
Performance |
| Timeline |
| Baloise Holding AG |
| SF Sustainable Property |
Baloise Holding and SF Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and SF Sustainable
The main advantage of trading using opposite Baloise Holding and SF Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, SF Sustainable 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 SF Sustainable will offset losses from the drop in SF Sustainable'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 |
| SF Sustainable vs. Procimmo Real Estate | SF Sustainable vs. SPDR Dow Jones | SF Sustainable vs. Baloise Holding AG | SF Sustainable vs. Autoneum Holding 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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