Correlation Between Ascom Holding and DocMorris

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

Diversification Opportunities for Ascom Holding and DocMorris

0.71

Correlation Coefficient

Ascom Holding  DocMorris

Poor diversification

The 3 months correlation between Ascom and DocMorris is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ascom Holding AG and DocMorris AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DocMorris 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 DocMorris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DocMorris AG has no effect on the direction of Ascom Holding i.e., Ascom Holding and DocMorris go up and down completely randomly.

Pair Corralation between Ascom Holding and DocMorris

Assuming the 90 days trading horizon Ascom Holding AG is expected to generate 0.74 times more return on investment than DocMorris. However, Ascom Holding AG is 1.34 times less risky than DocMorris. It trades about -0.01 of its potential returns per unit of risk. DocMorris AG is currently generating about -0.04 per unit of risk. If you would invest  375.00  in Ascom Holding AG on September 23, 2025 and sell it today you would lose (11.00) from holding Ascom Holding AG or give up 2.93% of portfolio value over 90 days.

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

Ascom Holding AG  vs.  DocMorris AG

Ascom Holding AG

Risk-Adjusted Performance

Weakest

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 fairly stable basic indicators, Ascom Holding is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

DocMorris AG

Risk-Adjusted Performance

Weakest

Over the last 90 days DocMorris AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Ascom Holding and DocMorris

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

The idea behind Ascom Holding AG and DocMorris 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.