Correlation Between Julius Baer and Immofonds

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

By analyzing existing cross correlation between Julius Baer Edelweiss and Immofonds, you can compare the effects of market volatilities on Julius Baer and Immofonds 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 Julius Baer with a short position of Immofonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Julius Baer and Immofonds.

Diversification Opportunities for Julius Baer and Immofonds

-0.79

Correlation Coefficient

Julius Baer  Immofonds

Pay attention - limited upside

The 3 months correlation between Julius and Immofonds is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Julius Baer Edelweiss and Immofonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofonds and Julius Baer 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 Julius Baer Edelweiss are associated (or correlated) with Immofonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofonds has no effect on the direction of Julius Baer i.e., Julius Baer and Immofonds go up and down completely randomly.

Pair Corralation between Julius Baer and Immofonds

Assuming the 90 days trading horizon Julius Baer Edelweiss is expected to under-perform the Immofonds. But the fund apears to be less risky and, when comparing its historical volatility, Julius Baer Edelweiss is 1.53 times less risky than Immofonds. The fund trades about -0.23 of its potential returns per unit of risk. The Immofonds is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  57,000  in Immofonds on September 26, 2024 and sell it today you would earn a total of  2,200  from holding Immofonds or generate 3.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Julius Baer Edelweiss  vs.  Immofonds

Julius Baer Edelweiss

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Julius Baer Edelweiss has generated negative risk-adjusted returns adding no value to fund investors. Despite latest unsteady performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Immofonds

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Immofonds are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Immofonds may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Julius Baer and Immofonds

The main advantage of trading using opposite Julius Baer and Immofonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Julius Baer position performs unexpectedly, Immofonds 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 Immofonds will offset losses from the drop in Immofonds' long position.

The idea behind Julius Baer Edelweiss and Immofonds 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..