Correlation Between Cicor Technologies and EMS CHEMIE
Can any of the company-specific risk be diversified away by investing in both Cicor Technologies and EMS CHEMIE 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 EMS CHEMIE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cicor Technologies and EMS CHEMIE HOLDING AG, you can compare the effects of market volatilities on Cicor Technologies and EMS CHEMIE 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 EMS CHEMIE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicor Technologies and EMS CHEMIE.
Diversification Opportunities for Cicor Technologies and EMS CHEMIE
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cicor and EMS is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and EMS CHEMIE HOLDING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMS CHEMIE HOLDING 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 EMS CHEMIE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMS CHEMIE HOLDING has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and EMS CHEMIE go up and down completely randomly.
Pair Corralation between Cicor Technologies and EMS CHEMIE
Assuming the 90 days trading horizon Cicor Technologies is expected to generate 1.24 times more return on investment than EMS CHEMIE. However, Cicor Technologies is 1.24 times more volatile than EMS CHEMIE HOLDING AG. It trades about 0.11 of its potential returns per unit of risk. EMS CHEMIE HOLDING AG is currently generating about -0.04 per unit of risk. If you would invest 5,180 in Cicor Technologies on November 7, 2024 and sell it today you would earn a total of 1,720 from holding Cicor Technologies or generate 33.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cicor Technologies vs. EMS CHEMIE HOLDING AG
Performance |
| Timeline |
| Cicor Technologies |
| EMS CHEMIE HOLDING |
Cicor Technologies and EMS CHEMIE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cicor Technologies and EMS CHEMIE
The main advantage of trading using opposite Cicor Technologies and EMS CHEMIE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicor Technologies position performs unexpectedly, EMS CHEMIE 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 EMS CHEMIE will offset losses from the drop in EMS CHEMIE'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 |
| EMS CHEMIE vs. HBM Healthcare Investments | EMS CHEMIE vs. Cembra Money Bank | EMS CHEMIE vs. Cicor Technologies | EMS CHEMIE vs. Softwareone Holding |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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