Correlation Between Cicor Technologies and Graubuendner Kantonalbank
Can any of the company-specific risk be diversified away by investing in both Cicor Technologies and Graubuendner Kantonalbank 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 Graubuendner Kantonalbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cicor Technologies and Graubuendner Kantonalbank, you can compare the effects of market volatilities on Cicor Technologies and Graubuendner Kantonalbank 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 Graubuendner Kantonalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicor Technologies and Graubuendner Kantonalbank.
Diversification Opportunities for Cicor Technologies and Graubuendner Kantonalbank
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cicor and Graubuendner is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Graubuendner Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graubuendner Kantonalbank 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 Graubuendner Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graubuendner Kantonalbank has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Graubuendner Kantonalbank go up and down completely randomly.
Pair Corralation between Cicor Technologies and Graubuendner Kantonalbank
Assuming the 90 days trading horizon Cicor Technologies is expected to generate 1.5 times more return on investment than Graubuendner Kantonalbank. However, Cicor Technologies is 1.5 times more volatile than Graubuendner Kantonalbank. It trades about 0.04 of its potential returns per unit of risk. Graubuendner Kantonalbank is currently generating about 0.01 per unit of risk. If you would invest 4,730 in Cicor Technologies on August 31, 2024 and sell it today you would earn a total of 1,070 from holding Cicor Technologies or generate 22.62% 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. Graubuendner Kantonalbank
Performance |
| Timeline |
| Cicor Technologies |
| Graubuendner Kantonalbank |
Cicor Technologies and Graubuendner Kantonalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cicor Technologies and Graubuendner Kantonalbank
The main advantage of trading using opposite Cicor Technologies and Graubuendner Kantonalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicor Technologies position performs unexpectedly, Graubuendner Kantonalbank 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 Graubuendner Kantonalbank will offset losses from the drop in Graubuendner Kantonalbank's long position.| Cicor Technologies vs. Jungfraubahn Holding AG | Cicor Technologies vs. Amsterdam Commodities NV | Cicor Technologies vs. Flow Traders BV | Cicor Technologies vs. ForFarmers NV |
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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.
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