Correlation Between Ascom Holding and Mobilezone
Can any of the company-specific risk be diversified away by investing in both Ascom Holding and Mobilezone 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 Mobilezone 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 mobilezone ag, you can compare the effects of market volatilities on Ascom Holding and Mobilezone 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 Mobilezone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascom Holding and Mobilezone.
Diversification Opportunities for Ascom Holding and Mobilezone
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ascom and Mobilezone is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ascom Holding AG and mobilezone ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone 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 Mobilezone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone ag has no effect on the direction of Ascom Holding i.e., Ascom Holding and Mobilezone go up and down completely randomly.
Pair Corralation between Ascom Holding and Mobilezone
Assuming the 90 days trading horizon Ascom Holding AG is expected to under-perform the Mobilezone. But the stock apears to be less risky and, when comparing its historical volatility, Ascom Holding AG is 1.17 times less risky than Mobilezone. The stock trades about -0.33 of its potential returns per unit of risk. The mobilezone ag is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 1,198 in mobilezone ag on January 22, 2025 and sell it today you would lose (124.00) from holding mobilezone ag or give up 10.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascom Holding AG vs. mobilezone ag
Performance |
| Timeline |
| Ascom Holding AG |
| mobilezone ag |
Ascom Holding and Mobilezone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascom Holding and Mobilezone
The main advantage of trading using opposite Ascom Holding and Mobilezone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascom Holding position performs unexpectedly, Mobilezone 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 Mobilezone will offset losses from the drop in Mobilezone'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 |
| Mobilezone vs. Cembra Money Bank | Mobilezone vs. Zurich Insurance Group | Mobilezone vs. Metall Zug AG | Mobilezone vs. Zuger Kantonalbank |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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