Correlation Between VZ Holding and Julius Baer
Can any of the company-specific risk be diversified away by investing in both VZ 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 VZ 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 VZ Holding AG and Julius Baer Gruppe, you can compare the effects of market volatilities on VZ 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 VZ Holding with a short position of Julius Baer. Check out your portfolio center. Please also check ongoing floating volatility patterns of VZ Holding and Julius Baer.
Diversification Opportunities for VZ Holding and Julius Baer
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between VZN and Julius is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding VZ 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 VZ 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 VZ 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 VZ Holding i.e., VZ Holding and Julius Baer go up and down completely randomly.
Pair Corralation between VZ Holding and Julius Baer
Assuming the 90 days trading horizon VZ Holding AG is expected to under-perform the Julius Baer. But the stock apears to be less risky and, when comparing its historical volatility, VZ Holding AG is 2.22 times less risky than Julius Baer. The stock trades about -0.05 of its potential returns per unit of risk. The Julius Baer Gruppe is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,492 in Julius Baer Gruppe on August 28, 2024 and sell it today you would earn a total of 256.00 from holding Julius Baer Gruppe or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VZ Holding AG vs. Julius Baer Gruppe
Performance |
| Timeline |
| VZ Holding AG |
| Julius Baer Gruppe |
VZ Holding and Julius Baer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VZ Holding and Julius Baer
The main advantage of trading using opposite VZ Holding and Julius Baer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VZ 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.| VZ Holding vs. Helvetia Holding AG | VZ Holding vs. Tecan Group AG | VZ Holding vs. Siegfried Holding | VZ Holding vs. Belimo Holding |
| Julius Baer vs. Bachem Holding AG | Julius Baer vs. Kudelski | Julius Baer vs. Alpine Select AG | Julius Baer vs. BB Biotech AG |
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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