Correlation Between EMS CHEMIE and Mikron Holding

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

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

Diversification Opportunities for EMS CHEMIE and Mikron Holding

-0.11

Correlation Coefficient

EMS CHEMIE  Mikron Holding

Good diversification

The 3 months correlation between EMS and Mikron is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding EMS CHEMIE 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 EMS CHEMIE 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 EMS CHEMIE 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 EMS CHEMIE i.e., EMS CHEMIE and Mikron Holding go up and down completely randomly.

Pair Corralation between EMS CHEMIE and Mikron Holding

Assuming the 90 days trading horizon EMS CHEMIE is expected to generate 1.22 times less return on investment than Mikron Holding. But when comparing it to its historical volatility, EMS CHEMIE HOLDING AG is 1.62 times less risky than Mikron Holding. It trades about 0.11 of its potential returns per unit of risk. Mikron Holding AG is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,650  in Mikron Holding AG on April 24, 2025 and sell it today you would earn a total of  160.00  from holding Mikron Holding AG or generate 9.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

EMS CHEMIE HOLDING AG  vs.  Mikron Holding AG

EMS CHEMIE HOLDING

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EMS CHEMIE HOLDING AG are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, EMS CHEMIE may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Mikron Holding may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with EMS CHEMIE and Mikron Holding

The main advantage of trading using opposite EMS CHEMIE and Mikron Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMS CHEMIE 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 EMS CHEMIE 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .