Correlation Between Baloise Holding and BCV Swiss
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By analyzing existing cross correlation between Baloise Holding AG and BCV Swiss Franc, you can compare the effects of market volatilities on Baloise Holding and BCV 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 Baloise Holding with a short position of BCV Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and BCV Swiss.
Diversification Opportunities for Baloise Holding and BCV Swiss
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baloise and BCV is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and BCV Swiss Franc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCV Swiss Franc and Baloise 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 Baloise Holding AG are associated (or correlated) with BCV Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCV Swiss Franc has no effect on the direction of Baloise Holding i.e., Baloise Holding and BCV Swiss go up and down completely randomly.
Pair Corralation between Baloise Holding and BCV Swiss
Assuming the 90 days trading horizon Baloise Holding AG is expected to generate 7.84 times more return on investment than BCV Swiss. However, Baloise Holding is 7.84 times more volatile than BCV Swiss Franc. It trades about 0.05 of its potential returns per unit of risk. BCV Swiss Franc is currently generating about 0.13 per unit of risk. If you would invest 13,264 in Baloise Holding AG on September 26, 2024 and sell it today you would earn a total of 3,136 from holding Baloise Holding AG or generate 23.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 86.95% |
Values | Daily Returns |
Baloise Holding AG vs. BCV Swiss Franc
Performance |
Timeline |
Baloise Holding AG |
BCV Swiss Franc |
Baloise Holding and BCV Swiss Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baloise Holding and BCV Swiss
The main advantage of trading using opposite Baloise Holding and BCV Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, BCV 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 BCV Swiss will offset losses from the drop in BCV Swiss' long position.Baloise Holding vs. Swiss Life Holding | Baloise Holding vs. Helvetia Holding AG | Baloise Holding vs. Adecco Group 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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