Correlation Between Komax Holding and Ascom Holding

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

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

Diversification Opportunities for Komax Holding and Ascom Holding

0.23

Correlation Coefficient

Komax Holding  Ascom Holding

Modest diversification

The 3 months correlation between Komax and Ascom is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Komax Holding AG and Ascom Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascom Holding AG and Komax 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 Komax Holding AG are associated (or correlated) with Ascom Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascom Holding AG has no effect on the direction of Komax Holding i.e., Komax Holding and Ascom Holding go up and down completely randomly.

Pair Corralation between Komax Holding and Ascom Holding

Assuming the 90 days trading horizon Komax Holding is expected to generate 2.36 times less return on investment than Ascom Holding. In addition to that, Komax Holding is 1.42 times more volatile than Ascom Holding AG. It trades about 0.09 of its total potential returns per unit of risk. Ascom Holding AG is currently generating about 0.29 per unit of volatility. If you would invest  294.00  in Ascom Holding AG on April 21, 2025 and sell it today you would earn a total of  98.00  from holding Ascom Holding AG or generate 33.33% return on investment over 90 days.

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

Komax Holding AG  vs.  Ascom Holding AG

Komax Holding AG

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Komax 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, Komax Holding showed solid returns over the last few months and may actually be approaching a breakup point.

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 22 (%) 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.

Pair Trading with Komax Holding and Ascom Holding

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

The idea behind Komax Holding AG and Ascom 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.