Correlation Between Amundi FTSE and Baloise Holding
Can any of the company-specific risk be diversified away by investing in both Amundi FTSE 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 Amundi FTSE and Baloise Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi FTSE EPRANAREIT and Baloise Holding AG, you can compare the effects of market volatilities on Amundi FTSE 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 Amundi FTSE with a short position of Baloise Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi FTSE and Baloise Holding.
Diversification Opportunities for Amundi FTSE and Baloise Holding
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amundi and Baloise is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Amundi FTSE EPRANAREIT 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 Amundi FTSE 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 Amundi FTSE EPRANAREIT 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 Amundi FTSE i.e., Amundi FTSE and Baloise Holding go up and down completely randomly.
Pair Corralation between Amundi FTSE and Baloise Holding
Assuming the 90 days trading horizon Amundi FTSE EPRANAREIT is expected to under-perform the Baloise Holding. In addition to that, Amundi FTSE is 1.78 times more volatile than Baloise Holding AG. It trades about -0.18 of its total potential returns per unit of risk. Baloise Holding AG is currently generating about -0.06 per unit of volatility. If you would invest 16,430 in Baloise Holding AG on September 14, 2024 and sell it today you would lose (130.00) from holding Baloise Holding AG or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi FTSE EPRANAREIT vs. Baloise Holding AG
Performance |
| Timeline |
| Amundi FTSE EPRANAREIT |
| Baloise Holding AG |
Amundi FTSE and Baloise Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi FTSE and Baloise Holding
The main advantage of trading using opposite Amundi FTSE and Baloise Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi FTSE 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.| Amundi FTSE vs. Baloise Holding AG | Amundi FTSE vs. 21Shares Polkadot ETP | Amundi FTSE vs. UBS ETF MSCI | Amundi FTSE vs. BB Biotech AG |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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