Correlation Between GAM Holding and Julius Baer
Can any of the company-specific risk be diversified away by investing in both GAM Holding and Julius Baer 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 GAM Holding and Julius Baer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAM Holding AG and Julius Baer Gruppe, you can compare the effects of market volatilities on GAM Holding and Julius Baer 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 GAM Holding with a short position of Julius Baer. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAM Holding and Julius Baer.
Diversification Opportunities for GAM Holding and Julius Baer
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GAM and Julius is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding GAM Holding AG and Julius Baer Gruppe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Julius Baer Gruppe and GAM Holding 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 GAM Holding AG are associated (or correlated) with Julius Baer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Julius Baer Gruppe has no effect on the direction of GAM Holding i.e., GAM Holding and Julius Baer go up and down completely randomly.
Pair Corralation between GAM Holding and Julius Baer
Assuming the 90 days trading horizon GAM Holding AG is expected to generate 9.47 times more return on investment than Julius Baer. However, GAM Holding is 9.47 times more volatile than Julius Baer Gruppe. It trades about 0.02 of its potential returns per unit of risk. Julius Baer Gruppe is currently generating about 0.17 per unit of risk. If you would invest 12.00 in GAM Holding AG on October 26, 2024 and sell it today you would lose (2.32) from holding GAM Holding AG or give up 19.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAM Holding AG vs. Julius Baer Gruppe
Performance |
| Timeline |
| GAM Holding AG |
| Julius Baer Gruppe |
GAM Holding and Julius Baer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAM Holding and Julius Baer
The main advantage of trading using opposite GAM Holding and Julius Baer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAM Holding position performs unexpectedly, Julius Baer 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 Julius Baer will offset losses from the drop in Julius Baer's long position.| GAM Holding vs. OC Oerlikon Corp | GAM Holding vs. EFG International AG | GAM Holding vs. Julius Baer Gruppe | GAM Holding vs. Aryzta AG |
| Julius Baer vs. Swiss Life Holding | Julius Baer vs. UBS Group AG | Julius Baer vs. Adecco Group AG | Julius Baer 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |