Correlation Between Mikron Holding and Mobilezone
Can any of the company-specific risk be diversified away by investing in both Mikron Holding and Mobilezone 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 Mobilezone 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 mobilezone ag, you can compare the effects of market volatilities on Mikron Holding and Mobilezone 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 Mobilezone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mikron Holding and Mobilezone.
Diversification Opportunities for Mikron Holding and Mobilezone
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mikron and Mobilezone is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Mikron Holding AG and mobilezone ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone 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 Mobilezone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone ag has no effect on the direction of Mikron Holding i.e., Mikron Holding and Mobilezone go up and down completely randomly.
Pair Corralation between Mikron Holding and Mobilezone
Assuming the 90 days trading horizon Mikron Holding AG is expected to under-perform the Mobilezone. In addition to that, Mikron Holding is 2.59 times more volatile than mobilezone ag. It trades about -0.18 of its total potential returns per unit of risk. mobilezone ag is currently generating about 0.09 per unit of volatility. If you would invest 1,330 in mobilezone ag on September 2, 2024 and sell it today you would earn a total of 66.00 from holding mobilezone ag or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mikron Holding AG vs. mobilezone ag
Performance |
| Timeline |
| Mikron Holding AG |
| mobilezone ag |
Mikron Holding and Mobilezone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mikron Holding and Mobilezone
The main advantage of trading using opposite Mikron Holding and Mobilezone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mikron Holding position performs unexpectedly, Mobilezone 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 Mobilezone will offset losses from the drop in Mobilezone'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 |
| Mobilezone vs. Cembra Money Bank | Mobilezone vs. Adval Tech Holding | Mobilezone vs. Cicor Technologies | Mobilezone vs. Berner Kantonalbank 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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