Correlation Between Ascom Holding and Mikron Holding

Can any of the company-specific risk be diversified away by investing in both Ascom Holding 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 Ascom Holding and Mikron Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ascom Holding AG and Mikron Holding AG, you can compare the effects of market volatilities on Ascom Holding 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 Ascom Holding with a short position of Mikron Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascom Holding and Mikron Holding.

Diversification Opportunities for Ascom Holding and Mikron Holding

0.69

Correlation Coefficient

Ascom Holding  Mikron Holding

Poor diversification

The 3 months correlation between Ascom and Mikron is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ascom Holding 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 Ascom 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 Ascom Holding 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 Ascom Holding i.e., Ascom Holding and Mikron Holding go up and down completely randomly.

Pair Corralation between Ascom Holding and Mikron Holding

Assuming the 90 days trading horizon Ascom Holding AG is expected to generate 0.81 times more return on investment than Mikron Holding. However, Ascom Holding AG is 1.24 times less risky than Mikron Holding. It trades about 0.2 of its potential returns per unit of risk. Mikron Holding AG is currently generating about 0.12 per unit of risk. If you would invest  300.00  in Ascom Holding AG on April 23, 2025 and sell it today you would earn a total of  69.00  from holding Ascom Holding AG or generate 23.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Ascom Holding AG  vs.  Mikron Holding AG

Ascom Holding AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ascom Holding AG are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Ascom Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Mikron Holding AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mikron Holding AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Mikron Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ascom Holding and Mikron Holding

The main advantage of trading using opposite Ascom Holding and Mikron Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascom Holding 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.

The idea behind Ascom Holding AG and Mikron Holding AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.