Correlation Between UBSFund Solutions and Baloise Holding
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions 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 UBSFund Solutions and Baloise Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBSFund Solutions Bloomberg and Baloise Holding AG, you can compare the effects of market volatilities on UBSFund Solutions 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 UBSFund Solutions with a short position of Baloise Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and Baloise Holding.
Diversification Opportunities for UBSFund Solutions and Baloise Holding
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between UBSFund and Baloise is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions Bloomberg 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 UBSFund Solutions 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 UBSFund Solutions Bloomberg 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 UBSFund Solutions i.e., UBSFund Solutions and Baloise Holding go up and down completely randomly.
Pair Corralation between UBSFund Solutions and Baloise Holding
Assuming the 90 days trading horizon UBSFund Solutions Bloomberg is expected to generate 0.41 times more return on investment than Baloise Holding. However, UBSFund Solutions Bloomberg is 2.46 times less risky than Baloise Holding. It trades about 0.07 of its potential returns per unit of risk. Baloise Holding AG is currently generating about -0.18 per unit of risk. If you would invest 1,389 in UBSFund Solutions Bloomberg on September 25, 2024 and sell it today you would earn a total of 4.00 from holding UBSFund Solutions Bloomberg or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBSFund Solutions Bloomberg vs. Baloise Holding AG
Performance |
| Timeline |
| UBSFund Solutions |
| Baloise Holding AG |
UBSFund Solutions and Baloise Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBSFund Solutions and Baloise Holding
The main advantage of trading using opposite UBSFund Solutions and Baloise Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions 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.| UBSFund Solutions vs. UBSFund Solutions MSCI | UBSFund Solutions vs. Vanguard SP 500 | UBSFund Solutions vs. iShares VII PLC | UBSFund Solutions vs. iShares Core SP |
| Baloise Holding vs. Swiss Life Holding | Baloise Holding vs. Helvetia Holding AG | Baloise Holding vs. Adecco Group 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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