Correlation Between Procimmo Real and Baloise Holding
Can any of the company-specific risk be diversified away by investing in both Procimmo Real 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 Procimmo Real and Baloise Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procimmo Real Estate and Baloise Holding AG, you can compare the effects of market volatilities on Procimmo Real 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 Procimmo Real with a short position of Baloise Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procimmo Real and Baloise Holding.
Diversification Opportunities for Procimmo Real and Baloise Holding
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Procimmo and Baloise is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Procimmo Real Estate 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 Procimmo Real 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 Procimmo Real Estate 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 Procimmo Real i.e., Procimmo Real and Baloise Holding go up and down completely randomly.
Pair Corralation between Procimmo Real and Baloise Holding
Assuming the 90 days trading horizon Procimmo Real Estate is expected to generate 0.71 times more return on investment than Baloise Holding. However, Procimmo Real Estate is 1.41 times less risky than Baloise Holding. It trades about -0.11 of its potential returns per unit of risk. Baloise Holding AG is currently generating about -0.18 per unit of risk. If you would invest 15,700 in Procimmo Real Estate on August 28, 2024 and sell it today you would lose (300.00) from holding Procimmo Real Estate or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procimmo Real Estate vs. Baloise Holding AG
Performance |
| Timeline |
| Procimmo Real Estate |
| Baloise Holding AG |
Procimmo Real and Baloise Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procimmo Real and Baloise Holding
The main advantage of trading using opposite Procimmo Real and Baloise Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procimmo Real 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.| Procimmo Real vs. SPDR Dow Jones | Procimmo Real vs. Baloise Holding AG | Procimmo Real vs. Autoneum Holding AG | Procimmo Real vs. Banque Cantonale du |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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