Correlation Between Baloise Holding and Vanguard USD
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and Vanguard USD 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 USD 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 USD Treasury, you can compare the effects of market volatilities on Baloise Holding and Vanguard USD 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 USD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and Vanguard USD.
Diversification Opportunities for Baloise Holding and Vanguard USD
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baloise and Vanguard is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and Vanguard USD Treasury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard USD Treasury 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 USD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard USD Treasury has no effect on the direction of Baloise Holding i.e., Baloise Holding and Vanguard USD go up and down completely randomly.
Pair Corralation between Baloise Holding and Vanguard USD
Assuming the 90 days trading horizon Baloise Holding AG is expected to under-perform the Vanguard USD. In addition to that, Baloise Holding is 2.51 times more volatile than Vanguard USD Treasury. It trades about -0.1 of its total potential returns per unit of risk. Vanguard USD Treasury is currently generating about 0.26 per unit of volatility. If you would invest 2,264 in Vanguard USD Treasury on September 13, 2024 and sell it today you would earn a total of 33.00 from holding Vanguard USD Treasury or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baloise Holding AG vs. Vanguard USD Treasury
Performance |
| Timeline |
| Baloise Holding AG |
| Vanguard USD Treasury |
Baloise Holding and Vanguard USD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and Vanguard USD
The main advantage of trading using opposite Baloise Holding and Vanguard USD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, Vanguard USD 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 USD will offset losses from the drop in Vanguard USD'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 USD vs. Baloise Holding AG | Vanguard USD vs. 21Shares Polkadot ETP | Vanguard USD vs. UBS ETF MSCI | Vanguard USD 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |