Correlation Between OC Oerlikon and Komax Holding
Can any of the company-specific risk be diversified away by investing in both OC Oerlikon and Komax 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 OC Oerlikon and Komax Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OC Oerlikon Corp and Komax Holding AG, you can compare the effects of market volatilities on OC Oerlikon and Komax 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 OC Oerlikon with a short position of Komax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of OC Oerlikon and Komax Holding.
Diversification Opportunities for OC Oerlikon and Komax Holding
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OERL and Komax is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding OC Oerlikon Corp and Komax Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komax Holding AG and OC Oerlikon 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 OC Oerlikon Corp are associated (or correlated) with Komax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komax Holding AG has no effect on the direction of OC Oerlikon i.e., OC Oerlikon and Komax Holding go up and down completely randomly.
Pair Corralation between OC Oerlikon and Komax Holding
Assuming the 90 days trading horizon OC Oerlikon Corp is expected to generate 1.27 times more return on investment than Komax Holding. However, OC Oerlikon is 1.27 times more volatile than Komax Holding AG. It trades about 0.03 of its potential returns per unit of risk. Komax Holding AG is currently generating about -0.09 per unit of risk. If you would invest 349.00 in OC Oerlikon Corp on September 1, 2024 and sell it today you would earn a total of 25.00 from holding OC Oerlikon Corp or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OC Oerlikon Corp vs. Komax Holding AG
Performance |
| Timeline |
| OC Oerlikon Corp |
| Komax Holding AG |
OC Oerlikon and Komax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OC Oerlikon and Komax Holding
The main advantage of trading using opposite OC Oerlikon and Komax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OC Oerlikon position performs unexpectedly, Komax 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 Komax Holding will offset losses from the drop in Komax Holding's long position.| OC Oerlikon vs. Sulzer AG | OC Oerlikon vs. Helvetia Holding AG | OC Oerlikon vs. Swiss Life Holding | OC Oerlikon vs. Adecco Group AG |
| Komax Holding vs. Comet Holding AG | Komax Holding vs. Bossard Holding AG | Komax Holding vs. VAT Group AG | Komax Holding vs. Bucher Industries 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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