Correlation Between Cicor Technologies and Groupe Minoteries
Can any of the company-specific risk be diversified away by investing in both Cicor Technologies and Groupe Minoteries 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 Groupe Minoteries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cicor Technologies and Groupe Minoteries SA, you can compare the effects of market volatilities on Cicor Technologies and Groupe Minoteries 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 Groupe Minoteries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicor Technologies and Groupe Minoteries.
Diversification Opportunities for Cicor Technologies and Groupe Minoteries
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cicor and Groupe is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Groupe Minoteries SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Minoteries 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 Groupe Minoteries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Minoteries has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Groupe Minoteries go up and down completely randomly.
Pair Corralation between Cicor Technologies and Groupe Minoteries
Assuming the 90 days trading horizon Cicor Technologies is expected to generate 1.08 times more return on investment than Groupe Minoteries. However, Cicor Technologies is 1.08 times more volatile than Groupe Minoteries SA. It trades about 0.38 of its potential returns per unit of risk. Groupe Minoteries SA is currently generating about 0.18 per unit of risk. If you would invest 5,140 in Cicor Technologies on September 3, 2024 and sell it today you would earn a total of 760.00 from holding Cicor Technologies or generate 14.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cicor Technologies vs. Groupe Minoteries SA
Performance |
| Timeline |
| Cicor Technologies |
| Groupe Minoteries |
Cicor Technologies and Groupe Minoteries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cicor Technologies and Groupe Minoteries
The main advantage of trading using opposite Cicor Technologies and Groupe Minoteries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicor Technologies position performs unexpectedly, Groupe Minoteries 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 Groupe Minoteries will offset losses from the drop in Groupe Minoteries' 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 |
| Groupe Minoteries vs. Carlo Gavazzi Holding | Groupe Minoteries vs. Emmi AG | Groupe Minoteries vs. Cicor Technologies | Groupe Minoteries vs. Lem Holding 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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