Correlation Between Cembra Money and Julius Baer

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

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

Diversification Opportunities for Cembra Money and Julius Baer

0.27

Correlation Coefficient

Cembra Money  Julius Baer

Modest diversification

The 3 months correlation between Cembra and Julius is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cembra Money Bank 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 Cembra Money 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 Cembra Money Bank 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 Cembra Money i.e., Cembra Money and Julius Baer go up and down completely randomly.

Pair Corralation between Cembra Money and Julius Baer

Assuming the 90 days trading horizon Cembra Money is expected to generate 1.14 times less return on investment than Julius Baer. But when comparing it to its historical volatility, Cembra Money Bank is 1.77 times less risky than Julius Baer. It trades about 0.18 of its potential returns per unit of risk. Julius Baer Gruppe is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  5,130  in Julius Baer Gruppe on April 23, 2025 and sell it today you would earn a total of  520.00  from holding Julius Baer Gruppe or generate 10.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Cembra Money Bank  vs.  Julius Baer Gruppe

Cembra Money Bank

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cembra Money Bank are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Cembra Money may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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.

Pair Trading with Cembra Money and Julius Baer

The main advantage of trading using opposite Cembra Money and Julius Baer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cembra Money 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 Cembra Money Bank 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 Global Correlations module to find global opportunities by holding instruments from different markets.