Correlation Between Baloise Swiss and Immofonds
Can any of the company-specific risk be diversified away by investing in both Baloise Swiss and Immofonds 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 Swiss and Immofonds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baloise Swiss Property and Immofonds, you can compare the effects of market volatilities on Baloise Swiss and Immofonds 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 Swiss with a short position of Immofonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Swiss and Immofonds.
Diversification Opportunities for Baloise Swiss and Immofonds
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Baloise and Immofonds is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Swiss Property and Immofonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofonds and Baloise Swiss 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 Swiss Property are associated (or correlated) with Immofonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofonds has no effect on the direction of Baloise Swiss i.e., Baloise Swiss and Immofonds go up and down completely randomly.
Pair Corralation between Baloise Swiss and Immofonds
Assuming the 90 days trading horizon Baloise Swiss is expected to generate 5.1 times less return on investment than Immofonds. But when comparing it to its historical volatility, Baloise Swiss Property is 1.04 times less risky than Immofonds. It trades about 0.01 of its potential returns per unit of risk. Immofonds is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 50,763 in Immofonds on September 20, 2024 and sell it today you would earn a total of 8,437 from holding Immofonds or generate 16.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Baloise Swiss Property vs. Immofonds
Performance |
| Timeline |
| Baloise Swiss Property |
| Immofonds |
Baloise Swiss and Immofonds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Swiss and Immofonds
The main advantage of trading using opposite Baloise Swiss and Immofonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Swiss position performs unexpectedly, Immofonds 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 Immofonds will offset losses from the drop in Immofonds' long position.| Baloise Swiss vs. SPDR Dow Jones | Baloise Swiss vs. Baloise Holding AG | Baloise Swiss vs. Banque Cantonale du | Baloise Swiss vs. 21Shares Polkadot ETP |
| Immofonds vs. CS Real Estate | Immofonds vs. CS Real Estate | Immofonds vs. Swissinvest Real Estate | Immofonds vs. Realstone Swiss Property |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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