Correlation Between Interroll Holding and Mikron Holding
Can any of the company-specific risk be diversified away by investing in both Interroll Holding 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 Interroll Holding and Mikron Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interroll Holding AG and Mikron Holding AG, you can compare the effects of market volatilities on Interroll Holding 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 Interroll Holding with a short position of Mikron Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interroll Holding and Mikron Holding.
Diversification Opportunities for Interroll Holding and Mikron Holding
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Interroll and Mikron is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Interroll Holding 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 Interroll 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 Interroll Holding 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 Interroll Holding i.e., Interroll Holding and Mikron Holding go up and down completely randomly.
Pair Corralation between Interroll Holding and Mikron Holding
Assuming the 90 days trading horizon Interroll Holding AG is expected to under-perform the Mikron Holding. In addition to that, Interroll Holding is 1.01 times more volatile than Mikron Holding AG. It trades about -0.03 of its total potential returns per unit of risk. Mikron Holding AG is currently generating about 0.02 per unit of volatility. If you would invest 1,253 in Mikron Holding AG on September 12, 2024 and sell it today you would earn a total of 112.00 from holding Mikron Holding AG or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interroll Holding AG vs. Mikron Holding AG
Performance |
| Timeline |
| Interroll Holding |
| Mikron Holding AG |
Interroll Holding and Mikron Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interroll Holding and Mikron Holding
The main advantage of trading using opposite Interroll Holding and Mikron Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interroll Holding 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.| Interroll Holding vs. Belimo Holding | Interroll Holding vs. Bachem Holding AG | Interroll Holding vs. VAT Group AG | Interroll Holding vs. Kardex |
| Mikron Holding vs. Sulzer AG | Mikron Holding vs. Helvetia Holding AG | Mikron Holding vs. Swiss Life Holding | Mikron Holding vs. Adecco Group 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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