Correlation Between Julius Baer and Bellevue Group

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

By analyzing existing cross correlation between Julius Baer Gruppe and Bellevue Group AG, you can compare the effects of market volatilities on Julius Baer and Bellevue Group 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 Bellevue Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Julius Baer and Bellevue Group.

Diversification Opportunities for Julius Baer and Bellevue Group

0.23

Correlation Coefficient

Julius Baer  Bellevue Group

Modest diversification

The 3 months correlation between Julius and Bellevue is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Julius Baer Gruppe and Bellevue Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Group AG 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 Gruppe are associated (or correlated) with Bellevue Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Group AG has no effect on the direction of Julius Baer i.e., Julius Baer and Bellevue Group go up and down completely randomly.

Pair Corralation between Julius Baer and Bellevue Group

Assuming the 90 days trading horizon Julius Baer Gruppe is expected to generate 0.83 times more return on investment than Bellevue Group. However, Julius Baer Gruppe is 1.2 times less risky than Bellevue Group. It trades about 0.03 of its potential returns per unit of risk. Bellevue Group AG is currently generating about -0.04 per unit of risk. If you would invest  5,060  in Julius Baer Gruppe on November 28, 2024 and sell it today you would earn a total of  820.00  from holding Julius Baer Gruppe or generate 16.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Julius Baer Gruppe  vs.  Bellevue Group AG

Julius Baer Gruppe

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Julius Baer Gruppe are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Julius Baer is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Bellevue Group AG

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bellevue Group AG are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Bellevue Group showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Julius Baer and Bellevue Group

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

The idea behind Julius Baer Gruppe and Bellevue Group AG 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.