Correlation Between Implenia and U Blox
Can any of the company-specific risk be diversified away by investing in both Implenia and U Blox 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 U Blox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Implenia AG and U Blox Holding, you can compare the effects of market volatilities on Implenia and U Blox 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 U Blox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Implenia and U Blox.
Diversification Opportunities for Implenia and U Blox
Poor diversification
The 3 months correlation between Implenia and UBXN is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Implenia AG and U Blox Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Blox Holding 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 U Blox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Blox Holding has no effect on the direction of Implenia i.e., Implenia and U Blox go up and down completely randomly.
Pair Corralation between Implenia and U Blox
Assuming the 90 days trading horizon Implenia AG is expected to under-perform the U Blox. But the stock apears to be less risky and, when comparing its historical volatility, Implenia AG is 1.15 times less risky than U Blox. The stock trades about -0.25 of its potential returns per unit of risk. The U Blox Holding is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6,780 in U Blox Holding on August 29, 2024 and sell it today you would lose (40.00) from holding U Blox Holding or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Implenia AG vs. U Blox Holding
Performance |
| Timeline |
| Implenia AG |
| U Blox Holding |
Implenia and U Blox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Implenia and U Blox
The main advantage of trading using opposite Implenia and U Blox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Implenia position performs unexpectedly, U Blox 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 U Blox will offset losses from the drop in U Blox's long position.| Implenia vs. Helvetia Holding AG | Implenia vs. Bucher Industries AG | Implenia vs. Hubersuhner AG | Implenia vs. Stadler Rail AG |
| U Blox vs. Siegfried Holding | U Blox vs. VAT Group AG | U Blox vs. Lonza Group AG | U Blox vs. Straumann 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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