Correlation Between Ascom Holding and Nebag Ag
Can any of the company-specific risk be diversified away by investing in both Ascom Holding and Nebag Ag 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 Nebag Ag 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 Nebag ag, you can compare the effects of market volatilities on Ascom Holding and Nebag Ag 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 Nebag Ag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascom Holding and Nebag Ag.
Diversification Opportunities for Ascom Holding and Nebag Ag
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ascom and Nebag is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ascom Holding AG and Nebag ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nebag 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 Nebag Ag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nebag ag has no effect on the direction of Ascom Holding i.e., Ascom Holding and Nebag Ag go up and down completely randomly.
Pair Corralation between Ascom Holding and Nebag Ag
Assuming the 90 days trading horizon Ascom Holding AG is expected to generate 3.17 times more return on investment than Nebag Ag. However, Ascom Holding is 3.17 times more volatile than Nebag ag. It trades about 0.32 of its potential returns per unit of risk. Nebag ag is currently generating about 0.22 per unit of risk. If you would invest 320.00 in Ascom Holding AG on November 27, 2024 and sell it today you would earn a total of 62.00 from holding Ascom Holding AG or generate 19.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Ascom Holding AG vs. Nebag ag
Performance |
| Timeline |
| Ascom Holding AG |
| Nebag ag |
Ascom Holding and Nebag Ag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascom Holding and Nebag Ag
The main advantage of trading using opposite Ascom Holding and Nebag Ag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascom Holding position performs unexpectedly, Nebag Ag 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 Nebag Ag will offset losses from the drop in Nebag Ag'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 |
| Nebag Ag vs. Bachem Holding AG | Nebag Ag vs. Kudelski | Nebag Ag vs. Alpine Select AG | Nebag Ag vs. BB Biotech 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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