Correlation Between UBS Group and Mikron Holding
Can any of the company-specific risk be diversified away by investing in both UBS Group 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 UBS Group and Mikron Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS Group AG and Mikron Holding AG, you can compare the effects of market volatilities on UBS Group 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 UBS Group with a short position of Mikron Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Group and Mikron Holding.
Diversification Opportunities for UBS Group and Mikron Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UBS and Mikron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UBS Group AG 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 UBS Group 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 UBS Group AG 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 UBS Group i.e., UBS Group and Mikron Holding go up and down completely randomly.
Pair Corralation between UBS Group and Mikron Holding
If you would invest 1,628 in UBS Group AG on September 5, 2024 and sell it today you would earn a total of 1,253 from holding UBS Group AG or generate 76.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
UBS Group AG vs. Mikron Holding AG
Performance |
| Timeline |
| UBS Group AG |
| Mikron Holding AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UBS Group and Mikron Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Group and Mikron Holding
The main advantage of trading using opposite UBS Group and Mikron Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Group 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.| UBS Group vs. Zurich Insurance Group | UBS Group vs. Novartis AG | UBS Group vs. Swiss Re AG | UBS Group vs. ABB |
| Mikron Holding vs. Rieter Holding AG | Mikron Holding vs. Komax Holding AG | Mikron 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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