Correlation Between BCV Swiss and Baloise Swiss
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By analyzing existing cross correlation between BCV Swiss Franc and Baloise Swiss Property, you can compare the effects of market volatilities on BCV Swiss 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 BCV Swiss with a short position of Baloise Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCV Swiss and Baloise Swiss.
Diversification Opportunities for BCV Swiss and Baloise Swiss
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BCV and Baloise is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding BCV Swiss Franc 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 BCV Swiss 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 BCV Swiss Franc 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 BCV Swiss i.e., BCV Swiss and Baloise Swiss go up and down completely randomly.
Pair Corralation between BCV Swiss and Baloise Swiss
Assuming the 90 days trading horizon BCV Swiss is expected to generate 25.82 times less return on investment than Baloise Swiss. But when comparing it to its historical volatility, BCV Swiss Franc is 8.04 times less risky than Baloise Swiss. It trades about 0.11 of its potential returns per unit of risk. Baloise Swiss Property is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 11,900 in Baloise Swiss Property on September 26, 2024 and sell it today you would earn a total of 800.00 from holding Baloise Swiss Property or generate 6.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
BCV Swiss Franc vs. Baloise Swiss Property
Performance |
Timeline |
BCV Swiss Franc |
Baloise Swiss Property |
BCV Swiss and Baloise Swiss Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BCV Swiss and Baloise Swiss
The main advantage of trading using opposite BCV Swiss and Baloise Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCV Swiss 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.BCV Swiss vs. CSIF III Eq | BCV Swiss vs. UBS Property | BCV Swiss vs. Procimmo Real Estate | BCV Swiss vs. Baloise Holding 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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