Correlation Between Mikron Holding and Also Holding
Can any of the company-specific risk be diversified away by investing in both Mikron Holding and Also 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 Mikron Holding and Also Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mikron Holding AG and Also Holding AG, you can compare the effects of market volatilities on Mikron Holding and Also 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 Mikron Holding with a short position of Also Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mikron Holding and Also Holding.
Diversification Opportunities for Mikron Holding and Also Holding
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mikron and Also is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Mikron Holding AG and Also Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Also Holding AG and Mikron 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 Mikron Holding AG are associated (or correlated) with Also Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Also Holding AG has no effect on the direction of Mikron Holding i.e., Mikron Holding and Also Holding go up and down completely randomly.
Pair Corralation between Mikron Holding and Also Holding
Assuming the 90 days trading horizon Mikron Holding is expected to generate 1.03 times less return on investment than Also Holding. In addition to that, Mikron Holding is 1.01 times more volatile than Also Holding AG. It trades about 0.04 of its total potential returns per unit of risk. Also Holding AG is currently generating about 0.04 per unit of volatility. If you would invest 18,567 in Also Holding AG on September 1, 2024 and sell it today you would earn a total of 4,933 from holding Also Holding AG or generate 26.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Mikron Holding AG vs. Also Holding AG
Performance |
| Timeline |
| Mikron Holding AG |
| Also Holding AG |
Mikron Holding and Also Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mikron Holding and Also Holding
The main advantage of trading using opposite Mikron Holding and Also Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mikron Holding position performs unexpectedly, Also 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 Also Holding will offset losses from the drop in Also Holding's long position.| Mikron Holding vs. Rieter Holding AG | Mikron Holding vs. Feintool International Holding | Mikron Holding vs. Komax Holding AG | Mikron Holding vs. Bucher Industries AG |
| Also Holding vs. Bachem Holding AG | Also Holding vs. Comet Holding AG | Also Holding vs. Interroll Holding AG | Also Holding vs. Siegfried Holding |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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