Correlation Between Baloise Holding and Vanguard EUR
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and Vanguard EUR 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 Vanguard EUR 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 Vanguard EUR Eurozone, you can compare the effects of market volatilities on Baloise Holding and Vanguard EUR 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 Vanguard EUR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and Vanguard EUR.
Diversification Opportunities for Baloise Holding and Vanguard EUR
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baloise and Vanguard is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and Vanguard EUR Eurozone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard EUR Eurozone 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 Vanguard EUR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard EUR Eurozone has no effect on the direction of Baloise Holding i.e., Baloise Holding and Vanguard EUR go up and down completely randomly.
Pair Corralation between Baloise Holding and Vanguard EUR
Assuming the 90 days trading horizon Baloise Holding AG is expected to under-perform the Vanguard EUR. In addition to that, Baloise Holding is 2.73 times more volatile than Vanguard EUR Eurozone. It trades about -0.1 of its total potential returns per unit of risk. Vanguard EUR Eurozone is currently generating about 0.21 per unit of volatility. If you would invest 2,126 in Vanguard EUR Eurozone on September 13, 2024 and sell it today you would earn a total of 23.00 from holding Vanguard EUR Eurozone or generate 1.08% 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. Vanguard EUR Eurozone
Performance |
| Timeline |
| Baloise Holding AG |
| Vanguard EUR Eurozone |
Baloise Holding and Vanguard EUR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and Vanguard EUR
The main advantage of trading using opposite Baloise Holding and Vanguard EUR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, Vanguard EUR 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 Vanguard EUR will offset losses from the drop in Vanguard EUR'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 |
| Vanguard EUR vs. Baloise Holding AG | Vanguard EUR vs. 21Shares Polkadot ETP | Vanguard EUR vs. UBS ETF MSCI | Vanguard EUR 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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