Correlation Between Ascom Holding and Klingelnberg
Can any of the company-specific risk be diversified away by investing in both Ascom Holding and Klingelnberg 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 Ascom Holding and Klingelnberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascom Holding AG and Klingelnberg AG, you can compare the effects of market volatilities on Ascom Holding and Klingelnberg 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 Ascom Holding with a short position of Klingelnberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascom Holding and Klingelnberg.
Diversification Opportunities for Ascom Holding and Klingelnberg
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ascom and Klingelnberg is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ascom Holding AG and Klingelnberg AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klingelnberg AG and Ascom 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 Ascom Holding AG are associated (or correlated) with Klingelnberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klingelnberg AG has no effect on the direction of Ascom Holding i.e., Ascom Holding and Klingelnberg go up and down completely randomly.
Pair Corralation between Ascom Holding and Klingelnberg
Assuming the 90 days trading horizon Ascom Holding AG is expected to under-perform the Klingelnberg. But the stock apears to be less risky and, when comparing its historical volatility, Ascom Holding AG is 1.01 times less risky than Klingelnberg. The stock trades about -0.31 of its potential returns per unit of risk. The Klingelnberg AG is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 1,475 in Klingelnberg AG on September 2, 2024 and sell it today you would lose (115.00) from holding Klingelnberg AG or give up 7.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascom Holding AG vs. Klingelnberg AG
Performance |
| Timeline |
| Ascom Holding AG |
| Klingelnberg AG |
Ascom Holding and Klingelnberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascom Holding and Klingelnberg
The main advantage of trading using opposite Ascom Holding and Klingelnberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascom Holding position performs unexpectedly, Klingelnberg 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 Klingelnberg will offset losses from the drop in Klingelnberg's long position.| Ascom Holding vs. Comet Holding AG | Ascom Holding vs. Komax Holding AG | Ascom Holding vs. Implenia AG | Ascom Holding vs. Basilea Pharmaceutica AG |
| Klingelnberg vs. Mikron Holding AG | Klingelnberg vs. Implenia AG | Klingelnberg vs. mobilezone ag | Klingelnberg vs. Ascom Holding 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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