Correlation Between Julius Bär and Julius Baer

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

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

Diversification Opportunities for Julius Bär and Julius Baer

0.83

Correlation Coefficient

Julius Bär  Julius Baer

Very poor diversification

The 3 months correlation between Julius and Julius is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Julius Br Gruppe and Julius Baer Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Julius Baer Group and Julius Bär 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 Julius Br Gruppe 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 Group has no effect on the direction of Julius Bär i.e., Julius Bär and Julius Baer go up and down completely randomly.

Pair Corralation between Julius Bär and Julius Baer

Assuming the 90 days horizon Julius Bär is expected to generate 1.12 times less return on investment than Julius Baer. In addition to that, Julius Bär is 1.98 times more volatile than Julius Baer Group. It trades about 0.09 of its total potential returns per unit of risk. Julius Baer Group is currently generating about 0.19 per unit of volatility. If you would invest  1,107  in Julius Baer Group on September 2, 2024 and sell it today you would earn a total of  212.00  from holding Julius Baer Group or generate 19.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Julius Br Gruppe  vs.  Julius Baer Group

Julius Br Gruppe

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Julius Br Gruppe are ranked lower than 6 (%) 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.

Julius Baer Group

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Julius Baer Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Julius Baer showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Julius Bär and Julius Baer

The main advantage of trading using opposite Julius Bär and Julius Baer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Julius Bär 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 Julius Br Gruppe and Julius Baer Group 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.