Correlation Between Cicor Technologies and Lem Holding
Can any of the company-specific risk be diversified away by investing in both Cicor Technologies and Lem Holding 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 Lem Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cicor Technologies and Lem Holding SA, you can compare the effects of market volatilities on Cicor Technologies and Lem Holding 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 Lem Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicor Technologies and Lem Holding.
Diversification Opportunities for Cicor Technologies and Lem Holding
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cicor and Lem is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Lem Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lem Holding SA 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 Lem Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lem Holding SA has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Lem Holding go up and down completely randomly.
Pair Corralation between Cicor Technologies and Lem Holding
Assuming the 90 days trading horizon Cicor Technologies is expected to generate 0.41 times more return on investment than Lem Holding. However, Cicor Technologies is 2.44 times less risky than Lem Holding. It trades about 0.26 of its potential returns per unit of risk. Lem Holding SA is currently generating about -0.29 per unit of risk. If you would invest 5,000 in Cicor Technologies on September 4, 2024 and sell it today you would earn a total of 960.00 from holding Cicor Technologies or generate 19.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cicor Technologies vs. Lem Holding SA
Performance |
| Timeline |
| Cicor Technologies |
| Lem Holding SA |
Cicor Technologies and Lem Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cicor Technologies and Lem Holding
The main advantage of trading using opposite Cicor Technologies and Lem Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicor Technologies position performs unexpectedly, Lem Holding 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 Lem Holding will offset losses from the drop in Lem Holding's long position.| Cicor Technologies vs. Implenia AG | Cicor Technologies vs. OC Oerlikon Corp | Cicor Technologies vs. Sulzer AG | Cicor Technologies vs. Swissquote Group Holding |
| Lem Holding vs. Inficon Holding | Lem Holding vs. Belimo Holding | Lem Holding vs. Interroll Holding AG | Lem Holding vs. Comet Holding AG |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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