Correlation Between Baloise Holding and UBS ETF
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and UBS ETF 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 UBS ETF 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 UBS ETF plc, you can compare the effects of market volatilities on Baloise Holding and UBS ETF 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 UBS ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and UBS ETF.
Diversification Opportunities for Baloise Holding and UBS ETF
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baloise and UBS is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and UBS ETF plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETF plc 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 UBS ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS ETF plc has no effect on the direction of Baloise Holding i.e., Baloise Holding and UBS ETF go up and down completely randomly.
Pair Corralation between Baloise Holding and UBS ETF
Assuming the 90 days trading horizon Baloise Holding AG is expected to generate 1.45 times more return on investment than UBS ETF. However, Baloise Holding is 1.45 times more volatile than UBS ETF plc. It trades about 0.12 of its potential returns per unit of risk. UBS ETF plc is currently generating about 0.11 per unit of risk. If you would invest 12,484 in Baloise Holding AG on September 12, 2024 and sell it today you would earn a total of 3,916 from holding Baloise Holding AG or generate 31.37% 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. UBS ETF plc
Performance |
| Timeline |
| Baloise Holding AG |
| UBS ETF plc |
Baloise Holding and UBS ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and UBS ETF
The main advantage of trading using opposite Baloise Holding and UBS ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, UBS ETF 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 UBS ETF will offset losses from the drop in UBS ETF'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 |
| UBS ETF vs. Baloise Holding AG | UBS ETF vs. 21Shares Polkadot ETP | UBS ETF vs. UBS ETF MSCI | UBS ETF 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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