Correlation Between Dow Jones and Baloise Swiss
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Baloise Swiss 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 Dow Jones and Baloise Swiss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Baloise Swiss Property, you can compare the effects of market volatilities on Dow Jones and Baloise Swiss 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 Dow Jones with a short position of Baloise Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Baloise Swiss.
Diversification Opportunities for Dow Jones and Baloise Swiss
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Baloise is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Baloise Swiss Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baloise Swiss Property and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Baloise Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baloise Swiss Property has no effect on the direction of Dow Jones i.e., Dow Jones and Baloise Swiss go up and down completely randomly.
Pair Corralation between Dow Jones and Baloise Swiss
Assuming the 90 days trading horizon Dow Jones is expected to generate 4.58 times less return on investment than Baloise Swiss. In addition to that, Dow Jones is 1.04 times more volatile than Baloise Swiss Property. It trades about 0.04 of its total potential returns per unit of risk. Baloise Swiss Property is currently generating about 0.19 per unit of volatility. If you would invest 11,950 in Baloise Swiss Property on September 19, 2024 and sell it today you would earn a total of 750.00 from holding Baloise Swiss Property or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Dow Jones Industrial vs. Baloise Swiss Property
Performance |
| Timeline |
Dow Jones and Baloise Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Baloise Swiss Property
Pair trading matchups for Baloise Swiss
Pair Trading with Dow Jones and Baloise Swiss
The main advantage of trading using opposite Dow Jones and Baloise Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Baloise Swiss 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 Swiss will offset losses from the drop in Baloise Swiss' long position.| Dow Jones vs. Mangazeya Mining | Dow Jones vs. Summit Materials | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. AMCON Distributing |
| Baloise Swiss vs. SPDR Dow Jones | Baloise Swiss vs. Baloise Holding AG | Baloise Swiss vs. Banque Cantonale du | Baloise Swiss vs. 21Shares Polkadot ETP |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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