Correlation Between Evolva Holding and Cicor Technologies
Can any of the company-specific risk be diversified away by investing in both Evolva Holding and Cicor Technologies 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 Evolva Holding and Cicor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolva Holding SA and Cicor Technologies, you can compare the effects of market volatilities on Evolva Holding and Cicor Technologies 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 Evolva Holding with a short position of Cicor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolva Holding and Cicor Technologies.
Diversification Opportunities for Evolva Holding and Cicor Technologies
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Evolva and Cicor is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Evolva Holding SA and Cicor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cicor Technologies and Evolva Holding 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 Evolva Holding SA are associated (or correlated) with Cicor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cicor Technologies has no effect on the direction of Evolva Holding i.e., Evolva Holding and Cicor Technologies go up and down completely randomly.
Pair Corralation between Evolva Holding and Cicor Technologies
Assuming the 90 days trading horizon Evolva Holding SA is expected to under-perform the Cicor Technologies. In addition to that, Evolva Holding is 5.75 times more volatile than Cicor Technologies. It trades about -0.04 of its total potential returns per unit of risk. Cicor Technologies is currently generating about 0.07 per unit of volatility. If you would invest 4,320 in Cicor Technologies on August 31, 2024 and sell it today you would earn a total of 1,480 from holding Cicor Technologies or generate 34.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Evolva Holding SA vs. Cicor Technologies
Performance |
| Timeline |
| Evolva Holding SA |
| Cicor Technologies |
Evolva Holding and Cicor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolva Holding and Cicor Technologies
The main advantage of trading using opposite Evolva Holding and Cicor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolva Holding position performs unexpectedly, Cicor Technologies 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 Cicor Technologies will offset losses from the drop in Cicor Technologies' long position.| Evolva Holding vs. Santhera Pharmaceuticals Holding | Evolva Holding vs. Basilea Pharmaceutica AG | Evolva Holding vs. Meyer Burger Tech | Evolva Holding vs. Newron Pharmaceuticals SpA |
| Cicor Technologies vs. Jungfraubahn Holding AG | Cicor Technologies vs. Amsterdam Commodities NV | Cicor Technologies vs. Flow Traders BV | Cicor Technologies vs. ForFarmers NV |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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