Correlation Between Immofonds and Julius Baer

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

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

Diversification Opportunities for Immofonds and Julius Baer

-0.79

Correlation Coefficient

Immofonds  Julius Baer

Pay attention - limited upside

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

Pair Corralation between Immofonds and Julius Baer

Assuming the 90 days horizon Immofonds is expected to generate 1.53 times more return on investment than Julius Baer. However, Immofonds is 1.53 times more volatile than Julius Baer Edelweiss. It trades about 0.24 of its potential returns per unit of risk. Julius Baer Edelweiss is currently generating about -0.23 per unit of risk. If you would invest  57,000  in Immofonds on September 26, 2024 and sell it today you would earn a total of  2,200  from holding Immofonds or generate 3.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Immofonds  vs.  Julius Baer Edelweiss

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.

Julius Baer Edelweiss

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Julius Baer Edelweiss has generated negative risk-adjusted returns adding no value to fund investors. Despite latest unsteady performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Immofonds and Julius Baer

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

The idea behind Immofonds and Julius Baer Edelweiss 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.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.