Correlation Between Adecco Group and Julius Baer
Can any of the company-specific risk be diversified away by investing in both Adecco Group 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 Adecco Group and Julius Baer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adecco Group AG and Julius Baer Gruppe, you can compare the effects of market volatilities on Adecco Group 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 Adecco Group with a short position of Julius Baer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adecco Group and Julius Baer.
Diversification Opportunities for Adecco Group and Julius Baer
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Adecco and Julius is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Adecco Group AG and Julius Baer Gruppe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Julius Baer Gruppe and Adecco Group 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 Adecco Group AG 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 Gruppe has no effect on the direction of Adecco Group i.e., Adecco Group and Julius Baer go up and down completely randomly.
Pair Corralation between Adecco Group and Julius Baer
Assuming the 90 days trading horizon Adecco Group AG is expected to under-perform the Julius Baer. In addition to that, Adecco Group is 1.09 times more volatile than Julius Baer Gruppe. It trades about -0.17 of its total potential returns per unit of risk. Julius Baer Gruppe is currently generating about 0.21 per unit of volatility. If you would invest 4,721 in Julius Baer Gruppe on September 5, 2024 and sell it today you would earn a total of 1,071 from holding Julius Baer Gruppe or generate 22.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Adecco Group AG vs. Julius Baer Gruppe
Performance |
Timeline |
Adecco Group AG |
Julius Baer Gruppe |
Adecco Group and Julius Baer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Adecco Group and Julius Baer
The main advantage of trading using opposite Adecco Group and Julius Baer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adecco Group 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.Adecco Group vs. Swisscom AG | Adecco Group vs. Swiss Life Holding | Adecco Group vs. Swiss Re AG | Adecco Group vs. ABB |
Julius Baer vs. Swiss Life Holding | Julius Baer vs. UBS Group AG | Julius Baer vs. Adecco Group AG | Julius Baer vs. Zurich Insurance Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |