Correlation Between Cicor Technologies and Cembra Money
Can any of the company-specific risk be diversified away by investing in both Cicor Technologies and Cembra Money 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 Cicor Technologies and Cembra Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cicor Technologies and Cembra Money Bank, you can compare the effects of market volatilities on Cicor Technologies and Cembra Money 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 Cicor Technologies with a short position of Cembra Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicor Technologies and Cembra Money.
Diversification Opportunities for Cicor Technologies and Cembra Money
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cicor and Cembra is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Cembra Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cembra Money Bank and Cicor Technologies 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 Cicor Technologies are associated (or correlated) with Cembra Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cembra Money Bank has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Cembra Money go up and down completely randomly.
Pair Corralation between Cicor Technologies and Cembra Money
Assuming the 90 days trading horizon Cicor Technologies is expected to generate 2.03 times more return on investment than Cembra Money. However, Cicor Technologies is 2.03 times more volatile than Cembra Money Bank. It trades about 0.36 of its potential returns per unit of risk. Cembra Money Bank is currently generating about 0.52 per unit of risk. If you would invest 5,620 in Cicor Technologies on October 26, 2024 and sell it today you would earn a total of 680.00 from holding Cicor Technologies or generate 12.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cicor Technologies vs. Cembra Money Bank
Performance |
| Timeline |
| Cicor Technologies |
| Cembra Money Bank |
Cicor Technologies and Cembra Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cicor Technologies and Cembra Money
The main advantage of trading using opposite Cicor Technologies and Cembra Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicor Technologies position performs unexpectedly, Cembra Money 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 Cembra Money will offset losses from the drop in Cembra Money's long position.| Cicor Technologies vs. Comet Holding AG | Cicor Technologies vs. Also Holding AG | Cicor Technologies vs. Komax Holding AG | Cicor Technologies vs. Bucher Industries AG |
| Cembra Money vs. Helvetia Holding AG | Cembra Money vs. Swiss Life Holding | Cembra Money vs. Baloise Holding AG | Cembra Money vs. Logitech International SA |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |