Correlation Between Ascom Holding and Implenia

Can any of the company-specific risk be diversified away by investing in both Ascom Holding and Implenia 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 Implenia 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 Implenia AG, you can compare the effects of market volatilities on Ascom Holding and Implenia 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 Implenia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascom Holding and Implenia.

Diversification Opportunities for Ascom Holding and Implenia

-0.45

Correlation Coefficient

Ascom Holding  Implenia

Very good diversification

The 3 months correlation between Ascom and Implenia is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ascom Holding AG and Implenia AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implenia 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 Implenia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implenia AG has no effect on the direction of Ascom Holding i.e., Ascom Holding and Implenia go up and down completely randomly.

Pair Corralation between Ascom Holding and Implenia

Assuming the 90 days trading horizon Ascom Holding AG is expected to generate 1.14 times more return on investment than Implenia. However, Ascom Holding is 1.14 times more volatile than Implenia AG. It trades about 0.22 of its potential returns per unit of risk. Implenia AG is currently generating about 0.09 per unit of risk. If you would invest  328.00  in Ascom Holding AG on December 5, 2024 and sell it today you would earn a total of  32.00  from holding Ascom Holding AG or generate 9.76% return on investment over 90 days.

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

Ascom Holding AG  vs.  Implenia AG

Ascom Holding AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ascom Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

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.

Pair Trading with Ascom Holding and Implenia

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

The idea behind Ascom Holding AG and Implenia 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 Commodity Directory module to find actively traded commodities issued by global exchanges.