Correlation Between Mikron Holding and Starrag Group

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

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

Diversification Opportunities for Mikron Holding and Starrag Group

-0.35

Correlation Coefficient

Mikron Holding  Starrag Group

Very good diversification

The 3 months correlation between Mikron and Starrag is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Mikron Holding AG and Starrag Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starrag Group Holding and Mikron 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 Mikron Holding AG are associated (or correlated) with Starrag Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starrag Group Holding has no effect on the direction of Mikron Holding i.e., Mikron Holding and Starrag Group go up and down completely randomly.

Pair Corralation between Mikron Holding and Starrag Group

Assuming the 90 days trading horizon Mikron Holding AG is expected to generate 0.75 times more return on investment than Starrag Group. However, Mikron Holding AG is 1.33 times less risky than Starrag Group. It trades about 0.13 of its potential returns per unit of risk. Starrag Group Holding is currently generating about 0.02 per unit of risk. If you would invest  1,556  in Mikron Holding AG on April 23, 2025 and sell it today you would earn a total of  278.00  from holding Mikron Holding AG or generate 17.87% return on investment over 90 days.

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

Mikron Holding AG  vs.  Starrag Group Holding

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 10 (%) 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.

Starrag Group Holding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Starrag Group Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Starrag Group is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Mikron Holding and Starrag Group

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

The idea behind Mikron Holding AG and Starrag Group Holding 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.