Correlation Between Cicor Technologies and Swiss Leader
Can any of the company-specific risk be diversified away by investing in both Cicor Technologies and Swiss Leader 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 Swiss Leader into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cicor Technologies and Swiss Leader Price, you can compare the effects of market volatilities on Cicor Technologies and Swiss Leader 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 Swiss Leader. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicor Technologies and Swiss Leader.
Diversification Opportunities for Cicor Technologies and Swiss Leader
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cicor and Swiss is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Swiss Leader Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Leader Price 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 Swiss Leader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Leader Price has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Swiss Leader go up and down completely randomly.
Pair Corralation between Cicor Technologies and Swiss Leader
Assuming the 90 days trading horizon Cicor Technologies is expected to generate 3.35 times more return on investment than Swiss Leader. However, Cicor Technologies is 3.35 times more volatile than Swiss Leader Price. It trades about 0.36 of its potential returns per unit of risk. Swiss Leader Price is currently generating about 0.6 per unit of risk. If you would invest 5,620 in Cicor Technologies on October 26, 2024 and sell it today you would earn a total of 680.00 from holding Cicor Technologies or generate 12.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cicor Technologies vs. Swiss Leader Price
Performance |
| Timeline |
Cicor Technologies and Swiss Leader Volatility Contrast
Predicted Return Density |
| Returns |
Cicor Technologies
Pair trading matchups for Cicor Technologies
Swiss Leader Price
Pair trading matchups for Swiss Leader
Pair Trading with Cicor Technologies and Swiss Leader
The main advantage of trading using opposite Cicor Technologies and Swiss Leader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicor Technologies position performs unexpectedly, Swiss Leader 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 Swiss Leader will offset losses from the drop in Swiss Leader'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 |
| Swiss Leader vs. St Galler Kantonalbank | Swiss Leader vs. Cicor Technologies | Swiss Leader vs. Zurich Insurance Group | Swiss Leader vs. Glarner Kantonalbank |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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