Correlation Between Baloise Swiss and Immofonds

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

By analyzing existing cross correlation between Baloise Swiss Property and Immofonds, you can compare the effects of market volatilities on Baloise Swiss and Immofonds 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 Swiss with a short position of Immofonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Swiss and Immofonds.

Diversification Opportunities for Baloise Swiss and Immofonds

0.84

Correlation Coefficient

Baloise Swiss  Immofonds

Very poor diversification

The 3 months correlation between Baloise and Immofonds is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Swiss Property and Immofonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofonds and Baloise 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 Baloise Swiss Property are associated (or correlated) with Immofonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofonds has no effect on the direction of Baloise Swiss i.e., Baloise Swiss and Immofonds go up and down completely randomly.

Pair Corralation between Baloise Swiss and Immofonds

Assuming the 90 days trading horizon Baloise Swiss Property is expected to generate 1.13 times more return on investment than Immofonds. However, Baloise Swiss is 1.13 times more volatile than Immofonds. It trades about 0.36 of its potential returns per unit of risk. Immofonds is currently generating about 0.24 per unit of risk. 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	100.0%
Values	Daily Returns

Baloise Swiss Property  vs.  Immofonds

Baloise Swiss Property

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Baloise Swiss Property are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of comparatively weak basic indicators, Baloise Swiss may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Immofonds

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Immofonds are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Immofonds may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Baloise Swiss and Immofonds

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

The idea behind Baloise Swiss Property and Immofonds 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.