Correlation Between Pictet Ch and Baloise Swiss

Can any of the company-specific risk be diversified away by investing in both Pictet Ch 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 Pictet Ch and Baloise Swiss into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pictet Ch Precious and Baloise Swiss Property, you can compare the effects of market volatilities on Pictet Ch 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 Pictet Ch with a short position of Baloise Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pictet Ch and Baloise Swiss.

Diversification Opportunities for Pictet Ch and Baloise Swiss

-0.06

Correlation Coefficient

Pictet Ch  Baloise Swiss

Good diversification

The 3 months correlation between Pictet and Baloise is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Pictet Ch Precious 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 Pictet Ch 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 Pictet Ch Precious 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 Pictet Ch i.e., Pictet Ch and Baloise Swiss go up and down completely randomly.

Pair Corralation between Pictet Ch and Baloise Swiss

Assuming the 90 days trading horizon Pictet Ch Precious is expected to under-perform the Baloise Swiss. In addition to that, Pictet Ch is 1.29 times more volatile than Baloise Swiss Property. It trades about -0.04 of its total potential returns per unit of risk. Baloise Swiss Property is currently generating about 0.22 per unit of volatility. If you would invest  11,600  in Baloise Swiss Property on September 28, 2024 and sell it today you would earn a total of  1,100  from holding Baloise Swiss Property or generate 9.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Pictet Ch Precious  vs.  Baloise Swiss Property

Pictet Ch Precious

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pictet Ch Precious has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, Pictet Ch is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Baloise Swiss Property

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Baloise Swiss Property are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of comparatively abnormal basic indicators, Baloise Swiss may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Pictet Ch and Baloise Swiss

The main advantage of trading using opposite Pictet Ch and Baloise Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pictet Ch 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.

The idea behind Pictet Ch Precious and Baloise Swiss Property pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.