Correlation Between Also Holding and Cicor Technologies
Can any of the company-specific risk be diversified away by investing in both Also 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 Also 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 Also Holding AG and Cicor Technologies, you can compare the effects of market volatilities on Also 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 Also Holding with a short position of Cicor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Also Holding and Cicor Technologies.
Diversification Opportunities for Also Holding and Cicor Technologies
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Also and Cicor is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Also Holding AG and Cicor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cicor Technologies and Also 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 Also Holding AG 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 Also Holding i.e., Also Holding and Cicor Technologies go up and down completely randomly.
Pair Corralation between Also Holding and Cicor Technologies
Assuming the 90 days trading horizon Also Holding is expected to generate 1.04 times less return on investment than Cicor Technologies. In addition to that, Also Holding is 1.37 times more volatile than Cicor Technologies. It trades about 0.05 of its total potential returns per unit of risk. Cicor Technologies is currently generating about 0.07 per unit of volatility. If you would invest 4,640 in Cicor Technologies on November 5, 2024 and sell it today you would earn a total of 2,140 from holding Cicor Technologies or generate 46.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Also Holding AG vs. Cicor Technologies
Performance |
| Timeline |
| Also Holding AG |
| Cicor Technologies |
Also Holding and Cicor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Also Holding and Cicor Technologies
The main advantage of trading using opposite Also Holding and Cicor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Also 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.| Also Holding vs. Bachem Holding AG | Also Holding vs. Comet Holding AG | Also Holding vs. Interroll Holding AG | Also Holding vs. Siegfried Holding |
| Cicor Technologies vs. Comet Holding AG | Cicor Technologies vs. Also Holding AG | Cicor Technologies vs. Komax Holding AG | Cicor Technologies vs. Bucher Industries AG |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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