Correlation Between Implenia and Sensirion Holding

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

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

Diversification Opportunities for Implenia and Sensirion Holding

0.88

Correlation Coefficient

Implenia  Sensirion Holding

Very poor diversification

The 3 months correlation between Implenia and Sensirion is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Implenia AG and Sensirion Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensirion Holding and Implenia 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 Implenia AG are associated (or correlated) with Sensirion Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensirion Holding has no effect on the direction of Implenia i.e., Implenia and Sensirion Holding go up and down completely randomly.

Pair Corralation between Implenia and Sensirion Holding

Assuming the 90 days trading horizon Implenia is expected to generate 1.69 times less return on investment than Sensirion Holding. But when comparing it to its historical volatility, Implenia AG is 1.14 times less risky than Sensirion Holding. It trades about 0.14 of its potential returns per unit of risk. Sensirion Holding AG is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  6,380  in Sensirion Holding AG on April 24, 2025 and sell it today you would earn a total of  1,950  from holding Sensirion Holding AG or generate 30.56% return on investment over 90 days.

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

Implenia AG  vs.  Sensirion Holding AG

Implenia AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Implenia AG are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Implenia showed solid returns over the last few months and may actually be approaching a breakup point.

Sensirion Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sensirion Holding AG are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Sensirion Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Implenia and Sensirion Holding

The main advantage of trading using opposite Implenia and Sensirion Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Implenia position performs unexpectedly, Sensirion 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 Sensirion Holding will offset losses from the drop in Sensirion Holding's long position.

The idea behind Implenia AG and Sensirion 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.