Correlation Between Bellevue Group and Baloise Holding
Can any of the company-specific risk be diversified away by investing in both Bellevue Group and Baloise Holding 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 Bellevue Group and Baloise Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bellevue Group AG and Baloise Holding AG, you can compare the effects of market volatilities on Bellevue Group and Baloise Holding 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 Bellevue Group with a short position of Baloise Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Group and Baloise Holding.
Diversification Opportunities for Bellevue Group and Baloise Holding
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bellevue and Baloise is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Group AG and Baloise Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baloise Holding AG and Bellevue Group 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 Bellevue Group AG are associated (or correlated) with Baloise Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baloise Holding AG has no effect on the direction of Bellevue Group i.e., Bellevue Group and Baloise Holding go up and down completely randomly.
Pair Corralation between Bellevue Group and Baloise Holding
Assuming the 90 days trading horizon Bellevue Group AG is expected to under-perform the Baloise Holding. In addition to that, Bellevue Group is 1.93 times more volatile than Baloise Holding AG. It trades about -0.1 of its total potential returns per unit of risk. Baloise Holding AG is currently generating about 0.05 per unit of volatility. If you would invest 13,615 in Baloise Holding AG on September 3, 2024 and sell it today you would earn a total of 3,125 from holding Baloise Holding AG or generate 22.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bellevue Group AG vs. Baloise Holding AG
Performance |
| Timeline |
| Bellevue Group AG |
| Baloise Holding AG |
Bellevue Group and Baloise Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Group and Baloise Holding
The main advantage of trading using opposite Bellevue Group and Baloise Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Group position performs unexpectedly, Baloise Holding 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 Baloise Holding will offset losses from the drop in Baloise Holding's long position.| Bellevue Group vs. BB Biotech AG | Bellevue Group vs. Leonteq AG | Bellevue Group vs. Helvetia Holding AG | Bellevue Group vs. EFG International AG |
| Baloise Holding vs. Swiss Life Holding | Baloise Holding vs. Helvetia Holding AG | Baloise Holding vs. Swisscom AG | Baloise Holding vs. Zurich Insurance Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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