Correlation Between Cicor Technologies and Santhera Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Cicor Technologies and Santhera Pharmaceuticals 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 Santhera Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cicor Technologies and Santhera Pharmaceuticals Holding, you can compare the effects of market volatilities on Cicor Technologies and Santhera Pharmaceuticals 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 Santhera Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicor Technologies and Santhera Pharmaceuticals.
Diversification Opportunities for Cicor Technologies and Santhera Pharmaceuticals
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cicor and Santhera is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Santhera Pharmaceuticals Holdi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santhera Pharmaceuticals 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 Santhera Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santhera Pharmaceuticals has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Santhera Pharmaceuticals go up and down completely randomly.
Pair Corralation between Cicor Technologies and Santhera Pharmaceuticals
Assuming the 90 days trading horizon Cicor Technologies is expected to generate 0.68 times more return on investment than Santhera Pharmaceuticals. However, Cicor Technologies is 1.46 times less risky than Santhera Pharmaceuticals. It trades about 0.11 of its potential returns per unit of risk. Santhera Pharmaceuticals Holding is currently generating about -0.05 per unit of risk. If you would invest 5,100 in Cicor Technologies on August 28, 2024 and sell it today you would earn a total of 560.00 from holding Cicor Technologies or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cicor Technologies vs. Santhera Pharmaceuticals Holdi
Performance |
| Timeline |
| Cicor Technologies |
| Santhera Pharmaceuticals |
Cicor Technologies and Santhera Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cicor Technologies and Santhera Pharmaceuticals
The main advantage of trading using opposite Cicor Technologies and Santhera Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicor Technologies position performs unexpectedly, Santhera Pharmaceuticals 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 Santhera Pharmaceuticals will offset losses from the drop in Santhera Pharmaceuticals' long position.| Cicor Technologies vs. Santhera Pharmaceuticals Holding | Cicor Technologies vs. Newron Pharmaceuticals SpA | Cicor Technologies vs. Basilea Pharmaceutica AG | Cicor Technologies vs. Evolva Holding SA |
| Santhera Pharmaceuticals vs. Basilea Pharmaceutica AG | Santhera Pharmaceuticals vs. Idorsia | Santhera Pharmaceuticals vs. Newron Pharmaceuticals SpA | Santhera Pharmaceuticals vs. Evolva 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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