Correlation Between Bank of New York and Julius Bär

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

By analyzing existing cross correlation between The Bank of and Julius Br Gruppe, you can compare the effects of market volatilities on Bank of New York and Julius Bär 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 Bank of New York with a short position of Julius Bär. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and Julius Bär.

Diversification Opportunities for Bank of New York and Julius Bär

0.42

Correlation Coefficient

Bank of New York  Julius Bär

Very weak diversification

The 3 months correlation between Bank and Julius is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding The Bank of and Julius Br Gruppe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Julius Br Gruppe and Bank of New York 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 The Bank of are associated (or correlated) with Julius Bär. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Julius Br Gruppe has no effect on the direction of Bank of New York i.e., Bank of New York and Julius Bär go up and down completely randomly.

Pair Corralation between Bank of New York and Julius Bär

Allowing for the 90-day total investment horizon Bank of New York is expected to generate 1.66 times less return on investment than Julius Bär. But when comparing it to its historical volatility, The Bank of is 1.46 times less risky than Julius Bär. It trades about 0.1 of its potential returns per unit of risk. Julius Br Gruppe is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  6,506  in Julius Br Gruppe on December 27, 2024 and sell it today you would earn a total of  972.00  from holding Julius Br Gruppe or generate 14.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.08%
Values	Daily Returns

The Bank of  vs.  Julius Br Gruppe

Bank of New York

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Bank of are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain forward-looking signals, Bank of New York may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Julius Br Gruppe

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Julius Br Gruppe are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Julius Bär reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bank of New York and Julius Bär

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

The idea behind The Bank of and Julius Br Gruppe 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.