Correlation Between Baloise Holding and 21Shares Tezos

Can any of the company-specific risk be diversified away by investing in both Baloise Holding and 21Shares Tezos 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 Baloise Holding and 21Shares Tezos into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Baloise Holding AG and 21Shares Tezos staking, you can compare the effects of market volatilities on Baloise Holding and 21Shares Tezos 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 Tezos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and 21Shares Tezos.

Diversification Opportunities for Baloise Holding and 21Shares Tezos

-0.79

Correlation Coefficient

Baloise Holding  21Shares Tezos

Pay attention - limited upside

The 3 months correlation between Baloise and 21Shares is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and 21Shares Tezos staking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Tezos staking 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 Tezos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Tezos staking has no effect on the direction of Baloise Holding i.e., Baloise Holding and 21Shares Tezos go up and down completely randomly.

Pair Corralation between Baloise Holding and 21Shares Tezos

Assuming the 90 days trading horizon Baloise Holding AG is expected to generate 0.17 times more return on investment than 21Shares Tezos. However, Baloise Holding AG is 5.73 times less risky than 21Shares Tezos. It trades about 0.18 of its potential returns per unit of risk. 21Shares Tezos staking is currently generating about -0.17 per unit of risk. If you would invest  16,460  in Baloise Holding AG on December 25, 2024 and sell it today you would earn a total of  1,660  from holding Baloise Holding AG or generate 10.09% 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 Tezos staking

Baloise Holding AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Baloise Holding AG are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Baloise Holding may actually be approaching a critical reversion point that can send shares even higher in April 2025.

21Shares Tezos staking

Risk-Adjusted Performance

Very Weak

Over the last 90 days 21Shares Tezos staking has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Etf's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the fund sophisticated investors.

Pair Trading with Baloise Holding and 21Shares Tezos

The main advantage of trading using opposite Baloise Holding and 21Shares Tezos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, 21Shares Tezos 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 Tezos will offset losses from the drop in 21Shares Tezos' long position.

The idea behind Baloise Holding AG and 21Shares Tezos staking 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.