Correlation Between Allreal Holding and Cicor Technologies
Can any of the company-specific risk be diversified away by investing in both Allreal Holding and Cicor Technologies 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 Allreal Holding and Cicor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allreal Holding and Cicor Technologies, you can compare the effects of market volatilities on Allreal Holding and Cicor Technologies 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 Allreal Holding with a short position of Cicor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allreal Holding and Cicor Technologies.
Diversification Opportunities for Allreal Holding and Cicor Technologies
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allreal and Cicor is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Allreal Holding and Cicor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cicor Technologies and Allreal 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 Allreal Holding are associated (or correlated) with Cicor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cicor Technologies has no effect on the direction of Allreal Holding i.e., Allreal Holding and Cicor Technologies go up and down completely randomly.
Pair Corralation between Allreal Holding and Cicor Technologies
Assuming the 90 days trading horizon Allreal Holding is expected to generate 2.26 times less return on investment than Cicor Technologies. But when comparing it to its historical volatility, Allreal Holding is 1.33 times less risky than Cicor Technologies. It trades about 0.03 of its potential returns per unit of risk. Cicor Technologies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,370 in Cicor Technologies on September 2, 2024 and sell it today you would earn a total of 1,530 from holding Cicor Technologies or generate 35.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allreal Holding vs. Cicor Technologies
Performance |
| Timeline |
| Allreal Holding |
| Cicor Technologies |
Allreal Holding and Cicor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allreal Holding and Cicor Technologies
The main advantage of trading using opposite Allreal Holding and Cicor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allreal Holding position performs unexpectedly, Cicor Technologies 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 Cicor Technologies will offset losses from the drop in Cicor Technologies' long position.| Allreal Holding vs. PSP Swiss Property | Allreal Holding vs. Swiss Prime Site | Allreal Holding vs. Mobimo Hldg | Allreal Holding vs. Helvetia Holding AG |
| Cicor Technologies vs. Jungfraubahn Holding AG | Cicor Technologies vs. Amsterdam Commodities NV | Cicor Technologies vs. Flow Traders BV | Cicor Technologies vs. ForFarmers NV |
Check out your portfolio center.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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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