Correlation Between Mikron Holding and Hubersuhner
Can any of the company-specific risk be diversified away by investing in both Mikron Holding and Hubersuhner 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 Hubersuhner 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 Hubersuhner AG, you can compare the effects of market volatilities on Mikron Holding and Hubersuhner 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 Hubersuhner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mikron Holding and Hubersuhner.
Diversification Opportunities for Mikron Holding and Hubersuhner
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mikron and Hubersuhner is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mikron Holding AG and Hubersuhner AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubersuhner 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 Hubersuhner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubersuhner AG has no effect on the direction of Mikron Holding i.e., Mikron Holding and Hubersuhner go up and down completely randomly.
Pair Corralation between Mikron Holding and Hubersuhner
Assuming the 90 days trading horizon Mikron Holding AG is expected to under-perform the Hubersuhner. In addition to that, Mikron Holding is 1.95 times more volatile than Hubersuhner AG. It trades about -0.22 of its total potential returns per unit of risk. Hubersuhner AG is currently generating about -0.17 per unit of volatility. If you would invest 8,450 in Hubersuhner AG on August 28, 2024 and sell it today you would lose (1,000.00) from holding Hubersuhner AG or give up 11.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mikron Holding AG vs. Hubersuhner AG
Performance |
| Timeline |
| Mikron Holding AG |
| Hubersuhner AG |
Mikron Holding and Hubersuhner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mikron Holding and Hubersuhner
The main advantage of trading using opposite Mikron Holding and Hubersuhner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mikron Holding position performs unexpectedly, Hubersuhner 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 Hubersuhner will offset losses from the drop in Hubersuhner's long position.| Mikron Holding vs. Helvetia Holding AG | Mikron Holding vs. Swiss Life Holding | Mikron Holding vs. VAT Group AG |
| Hubersuhner vs. Bucher Industries AG | Hubersuhner vs. Komax Holding AG | Hubersuhner vs. Comet Holding AG | Hubersuhner vs. Burckhardt Compression |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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