Correlation Between Baloise Holding and Zueblin Immobilien
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and Zueblin Immobilien 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 Zueblin Immobilien 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 Zueblin Immobilien Holding, you can compare the effects of market volatilities on Baloise Holding and Zueblin Immobilien 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 Zueblin Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and Zueblin Immobilien.
Diversification Opportunities for Baloise Holding and Zueblin Immobilien
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baloise and Zueblin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and Zueblin Immobilien Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zueblin Immobilien 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 Zueblin Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zueblin Immobilien has no effect on the direction of Baloise Holding i.e., Baloise Holding and Zueblin Immobilien go up and down completely randomly.
Pair Corralation between Baloise Holding and Zueblin Immobilien
Assuming the 90 days trading horizon Baloise Holding is expected to generate 1.38 times less return on investment than Zueblin Immobilien. But when comparing it to its historical volatility, Baloise Holding AG is 1.91 times less risky than Zueblin Immobilien. It trades about 0.13 of its potential returns per unit of risk. Zueblin Immobilien Holding is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,504 in Zueblin Immobilien Holding on September 3, 2024 and sell it today you would earn a total of 616.00 from holding Zueblin Immobilien Holding or generate 24.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baloise Holding AG vs. Zueblin Immobilien Holding
Performance |
| Timeline |
| Baloise Holding AG |
| Zueblin Immobilien |
Baloise Holding and Zueblin Immobilien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and Zueblin Immobilien
The main advantage of trading using opposite Baloise Holding and Zueblin Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, Zueblin Immobilien 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 Zueblin Immobilien will offset losses from the drop in Zueblin Immobilien'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 |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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