Correlation Between Also Holding and Komax Holding
Can any of the company-specific risk be diversified away by investing in both Also Holding and Komax 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 Also Holding and Komax Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Also Holding AG and Komax Holding AG, you can compare the effects of market volatilities on Also Holding and Komax 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 Also Holding with a short position of Komax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Also Holding and Komax Holding.
Diversification Opportunities for Also Holding and Komax Holding
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Also and Komax is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Also Holding AG and Komax Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komax Holding AG and Also Holding 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 Also Holding AG are associated (or correlated) with Komax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komax Holding AG has no effect on the direction of Also Holding i.e., Also Holding and Komax Holding go up and down completely randomly.
Pair Corralation between Also Holding and Komax Holding
Assuming the 90 days trading horizon Also Holding AG is expected to generate 0.76 times more return on investment than Komax Holding. However, Also Holding AG is 1.31 times less risky than Komax Holding. It trades about -0.19 of its potential returns per unit of risk. Komax Holding AG is currently generating about -0.17 per unit of risk. If you would invest 23,950 in Also Holding AG on August 25, 2024 and sell it today you would lose (1,150) from holding Also Holding AG or give up 4.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Also Holding AG vs. Komax Holding AG
Performance |
| Timeline |
| Also Holding AG |
| Komax Holding AG |
Also Holding and Komax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Also Holding and Komax Holding
The main advantage of trading using opposite Also Holding and Komax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Also Holding position performs unexpectedly, Komax 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 Komax Holding will offset losses from the drop in Komax Holding's long position.| Also Holding vs. Bachem Holding AG | Also Holding vs. Comet Holding AG | Also Holding vs. Interroll Holding AG | Also Holding vs. Siegfried Holding |
| Komax Holding vs. Comet Holding AG | Komax Holding vs. Bossard Holding AG | Komax Holding vs. VAT Group AG | Komax Holding vs. Bucher Industries AG |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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