Correlation Between CONICO and CEWE Stiftung

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Can any of the company-specific risk be diversified away by investing in both CONICO and CEWE Stiftung 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 CONICO and CEWE Stiftung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONICO LTD and CEWE Stiftung Co, you can compare the effects of market volatilities on CONICO and CEWE Stiftung 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 CONICO with a short position of CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONICO and CEWE Stiftung.

Diversification Opportunities for CONICO and CEWE Stiftung

-0.57
  Correlation Coefficient

Excellent diversification

The 3 months correlation between CONICO and CEWE is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding CONICO LTD and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung and CONICO 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 CONICO LTD are associated (or correlated) with CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of CONICO i.e., CONICO and CEWE Stiftung go up and down completely randomly.

Pair Corralation between CONICO and CEWE Stiftung

Assuming the 90 days horizon CONICO LTD is expected to generate 164.12 times more return on investment than CEWE Stiftung. However, CONICO is 164.12 times more volatile than CEWE Stiftung Co. It trades about 0.21 of its potential returns per unit of risk. CEWE Stiftung Co is currently generating about 0.05 per unit of risk. If you would invest  2.08  in CONICO LTD on November 18, 2025 and sell it today you would lose (1.68) from holding CONICO LTD or give up 80.77% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

CONICO LTD  vs.  CEWE Stiftung Co

 Performance 
       Timeline  
CONICO LTD 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CONICO LTD are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, CONICO reported solid returns over the last few months and may actually be approaching a breakup point.
CEWE Stiftung 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CEWE Stiftung Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, CEWE Stiftung is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

CONICO and CEWE Stiftung Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CONICO and CEWE Stiftung

The main advantage of trading using opposite CONICO and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONICO position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung's long position.
The idea behind CONICO LTD and CEWE Stiftung Co 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.
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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