Correlation Between Baloise Holding and Vanguard
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and Vanguard 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 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 SP 500, you can compare the effects of market volatilities on Baloise Holding and Vanguard 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and Vanguard.
Diversification Opportunities for Baloise Holding and Vanguard
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baloise and Vanguard is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and Vanguard SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard SP 500 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard SP 500 has no effect on the direction of Baloise Holding i.e., Baloise Holding and Vanguard go up and down completely randomly.
Pair Corralation between Baloise Holding and Vanguard
Assuming the 90 days trading horizon Baloise Holding is expected to generate 1.24 times less return on investment than Vanguard. In addition to that, Baloise Holding is 1.12 times more volatile than Vanguard SP 500. It trades about 0.08 of its total potential returns per unit of risk. Vanguard SP 500 is currently generating about 0.11 per unit of volatility. If you would invest 7,364 in Vanguard SP 500 on September 12, 2024 and sell it today you would earn a total of 2,782 from holding Vanguard SP 500 or generate 37.78% 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 SP 500
Performance |
| Timeline |
| Baloise Holding AG |
| Vanguard SP 500 |
Baloise Holding and Vanguard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and Vanguard
The main advantage of trading using opposite Baloise Holding and Vanguard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, Vanguard 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 will offset losses from the drop in Vanguard'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 vs. Baloise Holding AG | Vanguard vs. 21Shares Polkadot ETP | Vanguard vs. UBS ETF MSCI | Vanguard 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |