Correlation Between Julius Baer and Mikron Holding
Can any of the company-specific risk be diversified away by investing in both Julius Baer and Mikron 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 Julius Baer and Mikron Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Julius Baer Gruppe and Mikron Holding AG, you can compare the effects of market volatilities on Julius Baer and Mikron 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 Julius Baer with a short position of Mikron Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Julius Baer and Mikron Holding.
Diversification Opportunities for Julius Baer and Mikron Holding
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Julius and Mikron is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Julius Baer Gruppe and Mikron Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mikron Holding AG and Julius Baer 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 Julius Baer Gruppe are associated (or correlated) with Mikron Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mikron Holding AG has no effect on the direction of Julius Baer i.e., Julius Baer and Mikron Holding go up and down completely randomly.
Pair Corralation between Julius Baer and Mikron Holding
Assuming the 90 days trading horizon Julius Baer Gruppe is expected to generate 0.91 times more return on investment than Mikron Holding. However, Julius Baer Gruppe is 1.1 times less risky than Mikron Holding. It trades about 0.07 of its potential returns per unit of risk. Mikron Holding AG is currently generating about -0.12 per unit of risk. If you would invest 5,132 in Julius Baer Gruppe on September 5, 2024 and sell it today you would earn a total of 656.00 from holding Julius Baer Gruppe or generate 12.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Julius Baer Gruppe vs. Mikron Holding AG
Performance |
| Timeline |
| Julius Baer Gruppe |
| Mikron Holding AG |
Julius Baer and Mikron Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Julius Baer and Mikron Holding
The main advantage of trading using opposite Julius Baer and Mikron Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Julius Baer position performs unexpectedly, Mikron 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 Mikron Holding will offset losses from the drop in Mikron Holding's long position.| Julius Baer vs. Swiss Life Holding | Julius Baer vs. UBS Group AG | Julius Baer vs. Adecco Group AG | Julius Baer vs. Zurich Insurance Group |
| Mikron Holding vs. Rieter Holding AG | Mikron Holding vs. Feintool International Holding | Mikron Holding vs. Komax Holding AG | Mikron 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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