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 MSCI 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
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UBSFund and Baloise is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions MSCI 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 MSCI 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 is expected to generate 2.37 times less return on investment than Baloise Holding. But when comparing it to its historical volatility, UBSFund Solutions MSCI is 1.31 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 0.12 of returns per unit of risk over similar time horizon. If you would invest 12,503 in Baloise Holding AG on September 14, 2024 and sell it today you would earn a total of 3,797 from holding Baloise Holding AG or generate 30.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBSFund Solutions MSCI vs. Baloise Holding AG
Performance |
| Timeline |
| UBSFund Solutions MSCI |
| 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. UBSFund Solutions MSCI | UBSFund Solutions vs. UBSFund Solutions Bloomberg | UBSFund Solutions vs. UBSFund Solutions MSCI |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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