Correlation Between Mikron Holding and Valartis Group
Can any of the company-specific risk be diversified away by investing in both Mikron Holding and Valartis Group 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 Valartis Group 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 Valartis Group AG, you can compare the effects of market volatilities on Mikron Holding and Valartis Group 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 Valartis Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mikron Holding and Valartis Group.
Diversification Opportunities for Mikron Holding and Valartis Group
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mikron and Valartis is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mikron Holding AG and Valartis Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valartis Group 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 Valartis Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valartis Group AG has no effect on the direction of Mikron Holding i.e., Mikron Holding and Valartis Group go up and down completely randomly.
Pair Corralation between Mikron Holding and Valartis Group
Assuming the 90 days trading horizon Mikron Holding AG is expected to under-perform the Valartis Group. In addition to that, Mikron Holding is 1.13 times more volatile than Valartis Group AG. It trades about -0.13 of its total potential returns per unit of risk. Valartis Group AG is currently generating about -0.05 per unit of volatility. If you would invest 1,200 in Valartis Group AG on August 25, 2024 and sell it today you would lose (20.00) from holding Valartis Group AG or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 45.45% |
| Values | Daily Returns |
Mikron Holding AG vs. Valartis Group AG
Performance |
| Timeline |
| Mikron Holding AG |
| Valartis Group AG |
Mikron Holding and Valartis Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mikron Holding and Valartis Group
The main advantage of trading using opposite Mikron Holding and Valartis Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mikron Holding position performs unexpectedly, Valartis Group 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 Valartis Group will offset losses from the drop in Valartis Group'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 |
| Valartis Group vs. Starrag Group Holding | Valartis Group vs. Zueblin Immobilien Holding | Valartis Group vs. Schlatter Industries AG | Valartis Group vs. Mikron Holding 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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