Correlation Between SPDR Dow and Baloise Swiss
Can any of the company-specific risk be diversified away by investing in both SPDR Dow 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 SPDR Dow and Baloise Swiss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Dow Jones and Baloise Swiss Property, you can compare the effects of market volatilities on SPDR Dow 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 SPDR Dow with a short position of Baloise Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Dow and Baloise Swiss.
Diversification Opportunities for SPDR Dow and Baloise Swiss
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPDR and Baloise is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Dow Jones 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 SPDR Dow 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 SPDR Dow Jones 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 SPDR Dow i.e., SPDR Dow and Baloise Swiss go up and down completely randomly.
Pair Corralation between SPDR Dow and Baloise Swiss
Assuming the 90 days trading horizon SPDR Dow Jones is expected to generate 1.13 times more return on investment than Baloise Swiss. However, SPDR Dow is 1.13 times more volatile than Baloise Swiss Property. It trades about 0.03 of its potential returns per unit of risk. Baloise Swiss Property is currently generating about 0.01 per unit of risk. If you would invest 1,593 in SPDR Dow Jones on September 20, 2024 and sell it today you would earn a total of 166.00 from holding SPDR Dow Jones or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SPDR Dow Jones vs. Baloise Swiss Property
Performance |
| Timeline |
| SPDR Dow Jones |
| Baloise Swiss Property |
SPDR Dow and Baloise Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Dow and Baloise Swiss
The main advantage of trading using opposite SPDR Dow and Baloise Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Dow 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.| SPDR Dow vs. Baloise Holding AG | SPDR Dow vs. 21Shares Polkadot ETP | SPDR Dow vs. UBS ETF MSCI | SPDR Dow vs. BB Biotech AG |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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