Correlation Between Komax Holding and Belimo Holding
Can any of the company-specific risk be diversified away by investing in both Komax Holding and Belimo 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 Komax Holding and Belimo Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komax Holding AG and Belimo Holding, you can compare the effects of market volatilities on Komax Holding and Belimo 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 Komax Holding with a short position of Belimo Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komax Holding and Belimo Holding.
Diversification Opportunities for Komax Holding and Belimo Holding
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Komax and Belimo is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Komax Holding AG and Belimo Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belimo Holding and Komax 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 Komax Holding AG are associated (or correlated) with Belimo Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belimo Holding has no effect on the direction of Komax Holding i.e., Komax Holding and Belimo Holding go up and down completely randomly.
Pair Corralation between Komax Holding and Belimo Holding
Assuming the 90 days trading horizon Komax Holding AG is expected to under-perform the Belimo Holding. In addition to that, Komax Holding is 1.62 times more volatile than Belimo Holding. It trades about -0.17 of its total potential returns per unit of risk. Belimo Holding is currently generating about 0.07 per unit of volatility. If you would invest 57,250 in Belimo Holding on August 25, 2024 and sell it today you would earn a total of 800.00 from holding Belimo Holding or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Komax Holding AG vs. Belimo Holding
Performance |
| Timeline |
| Komax Holding AG |
| Belimo Holding |
Komax Holding and Belimo Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komax Holding and Belimo Holding
The main advantage of trading using opposite Komax Holding and Belimo Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komax Holding position performs unexpectedly, Belimo 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 Belimo Holding will offset losses from the drop in Belimo Holding's long position.| Komax Holding vs. Comet Holding AG | Komax Holding vs. Bossard Holding AG | Komax Holding vs. VAT Group AG | Komax Holding vs. Bucher Industries AG |
| Belimo Holding vs. Swiss Re AG | Belimo Holding vs. Zurich Insurance Group | Belimo Holding vs. Swiss Life Holding | Belimo Holding vs. Novartis 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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