Correlation Between Implenia and Mikron Holding
Can any of the company-specific risk be diversified away by investing in both Implenia 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 Implenia and Mikron Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Implenia AG and Mikron Holding AG, you can compare the effects of market volatilities on Implenia 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 Implenia with a short position of Mikron Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Implenia and Mikron Holding.
Diversification Opportunities for Implenia and Mikron Holding
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Implenia and Mikron is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Implenia AG 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 Implenia 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 Implenia AG 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 Implenia i.e., Implenia and Mikron Holding go up and down completely randomly.
Pair Corralation between Implenia and Mikron Holding
Assuming the 90 days trading horizon Implenia AG is expected to generate 0.51 times more return on investment than Mikron Holding. However, Implenia AG is 1.96 times less risky than Mikron Holding. It trades about -0.12 of its potential returns per unit of risk. Mikron Holding AG is currently generating about -0.09 per unit of risk. If you would invest 3,050 in Implenia AG on September 1, 2024 and sell it today you would lose (130.00) from holding Implenia AG or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Implenia AG vs. Mikron Holding AG
Performance |
| Timeline |
| Implenia AG |
| Mikron Holding AG |
Implenia and Mikron Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Implenia and Mikron Holding
The main advantage of trading using opposite Implenia and Mikron Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Implenia 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.| Implenia vs. Helvetia Holding AG | Implenia vs. Bucher Industries AG | Implenia vs. Hubersuhner AG | Implenia vs. Stadler Rail AG |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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