Correlation Between Nebag Ag and Julius Baer

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

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

Diversification Opportunities for Nebag Ag and Julius Baer

-0.61

Correlation Coefficient

Nebag Ag  Julius Baer

Excellent diversification

The 3 months correlation between Nebag and Julius is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nebag 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 Nebag Ag 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 Nebag 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 Nebag Ag i.e., Nebag Ag and Julius Baer go up and down completely randomly.

Pair Corralation between Nebag Ag and Julius Baer

Assuming the 90 days trading horizon Nebag ag is expected to under-perform the Julius Baer. But the stock apears to be less risky and, when comparing its historical volatility, Nebag ag is 1.08 times less risky than Julius Baer. The stock trades about -0.02 of its potential returns per unit of risk. The Julius Baer Gruppe is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  4,708  in Julius Baer Gruppe on September 13, 2024 and sell it today you would earn a total of  1,242  from holding Julius Baer Gruppe or generate 26.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	85.94%
Values	Daily Returns

Nebag ag  vs.  Julius Baer Gruppe

Nebag ag

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nebag ag has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Nebag Ag is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Julius Baer Gruppe

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Julius Baer Gruppe are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Julius Baer showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nebag Ag and Julius Baer

The main advantage of trading using opposite Nebag Ag and Julius Baer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nebag Ag 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 Nebag ag and Julius Baer 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..