Correlation Between Julius Baer and Vontobel Holding

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

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

Diversification Opportunities for Julius Baer and Vontobel Holding

0.54

Correlation Coefficient

Julius Baer  Vontobel Holding

Very weak diversification

The 3 months correlation between Julius and Vontobel is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Julius Baer Gruppe and Vontobel Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vontobel Holding and Julius Baer 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 Baer Gruppe are associated (or correlated) with Vontobel Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vontobel Holding has no effect on the direction of Julius Baer i.e., Julius Baer and Vontobel Holding go up and down completely randomly.

Pair Corralation between Julius Baer and Vontobel Holding

Assuming the 90 days trading horizon Julius Baer is expected to generate 1.57 times less return on investment than Vontobel Holding. In addition to that, Julius Baer is 1.55 times more volatile than Vontobel Holding. It trades about 0.11 of its total potential returns per unit of risk. Vontobel Holding is currently generating about 0.28 per unit of volatility. If you would invest  5,850  in Vontobel Holding on April 23, 2025 and sell it today you would earn a total of  1,010  from holding Vontobel Holding or generate 17.26% return on investment over 90 days.

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

Julius Baer Gruppe  vs.  Vontobel Holding

Julius Baer Gruppe

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Julius Baer Gruppe are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Julius Baer may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Vontobel Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vontobel Holding are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Vontobel Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Julius Baer and Vontobel Holding

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

The idea behind Julius Baer Gruppe and Vontobel Holding 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.