Correlation Between Baloise Holding and 21Shares Bitcoin
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By analyzing existing cross correlation between Baloise Holding AG and 21Shares Bitcoin ETP, you can compare the effects of market volatilities on Baloise Holding and 21Shares Bitcoin 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 21Shares Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and 21Shares Bitcoin.
Diversification Opportunities for Baloise Holding and 21Shares Bitcoin
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baloise and 21Shares is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and 21Shares Bitcoin ETP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Bitcoin ETP 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 21Shares Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Bitcoin ETP has no effect on the direction of Baloise Holding i.e., Baloise Holding and 21Shares Bitcoin go up and down completely randomly.
Pair Corralation between Baloise Holding and 21Shares Bitcoin
Assuming the 90 days trading horizon Baloise Holding AG is expected to under-perform the 21Shares Bitcoin. But the stock apears to be less risky and, when comparing its historical volatility, Baloise Holding AG is 3.61 times less risky than 21Shares Bitcoin. The stock trades about -0.01 of its potential returns per unit of risk. The 21Shares Bitcoin ETP is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,528 in 21Shares Bitcoin ETP on September 13, 2024 and sell it today you would earn a total of 1,136 from holding 21Shares Bitcoin ETP or generate 74.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Baloise Holding AG vs. 21Shares Bitcoin ETP
Performance |
Timeline |
Baloise Holding AG |
21Shares Bitcoin ETP |
Baloise Holding and 21Shares Bitcoin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baloise Holding and 21Shares Bitcoin
The main advantage of trading using opposite Baloise Holding and 21Shares Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, 21Shares Bitcoin 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 21Shares Bitcoin will offset losses from the drop in 21Shares Bitcoin's long position.Baloise Holding vs. Swiss Life Holding | Baloise Holding vs. Helvetia Holding AG | Baloise Holding vs. Swisscom AG | Baloise Holding vs. Zurich Insurance Group |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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