Correlation Between OC Oerlikon and Mikron Holding
Can any of the company-specific risk be diversified away by investing in both OC Oerlikon and Mikron 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 Mikron 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 Mikron Holding AG, you can compare the effects of market volatilities on OC Oerlikon and Mikron 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 Mikron Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of OC Oerlikon and Mikron Holding.
Diversification Opportunities for OC Oerlikon and Mikron Holding
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between OERL and Mikron is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding OC Oerlikon Corp and Mikron Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mikron 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 Mikron Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mikron Holding AG has no effect on the direction of OC Oerlikon i.e., OC Oerlikon and Mikron Holding go up and down completely randomly.
Pair Corralation between OC Oerlikon and Mikron Holding
Assuming the 90 days trading horizon OC Oerlikon is expected to generate 11.03 times less return on investment than Mikron Holding. In addition to that, OC Oerlikon is 1.15 times more volatile than Mikron Holding AG. It trades about 0.0 of its total potential returns per unit of risk. Mikron Holding AG is currently generating about 0.02 per unit of volatility. If you would invest 1,253 in Mikron Holding AG on September 12, 2024 and sell it today you would earn a total of 112.00 from holding Mikron Holding AG or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OC Oerlikon Corp vs. Mikron Holding AG
Performance |
| Timeline |
| OC Oerlikon Corp |
| Mikron Holding AG |
OC Oerlikon and Mikron Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OC Oerlikon and Mikron Holding
The main advantage of trading using opposite OC Oerlikon and Mikron Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OC Oerlikon position performs unexpectedly, Mikron 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 Mikron Holding will offset losses from the drop in Mikron 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 |
| Mikron Holding vs. Sulzer AG | Mikron Holding vs. Helvetia Holding AG | Mikron Holding vs. Swiss Life Holding | Mikron Holding vs. Adecco Group 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |