Correlation Between Carlo Gavazzi and Cicor Technologies
Can any of the company-specific risk be diversified away by investing in both Carlo Gavazzi 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 Carlo Gavazzi and Cicor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlo Gavazzi Holding and Cicor Technologies, you can compare the effects of market volatilities on Carlo Gavazzi 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 Carlo Gavazzi with a short position of Cicor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlo Gavazzi and Cicor Technologies.
Diversification Opportunities for Carlo Gavazzi and Cicor Technologies
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carlo and Cicor is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Carlo Gavazzi Holding and Cicor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cicor Technologies and Carlo Gavazzi 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 Carlo Gavazzi Holding 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 Carlo Gavazzi i.e., Carlo Gavazzi and Cicor Technologies go up and down completely randomly.
Pair Corralation between Carlo Gavazzi and Cicor Technologies
Assuming the 90 days trading horizon Carlo Gavazzi Holding is expected to under-perform the Cicor Technologies. In addition to that, Carlo Gavazzi is 1.66 times more volatile than Cicor Technologies. It trades about -0.03 of its total potential returns per unit of risk. Cicor Technologies is currently generating about 0.05 per unit of volatility. If you would invest 4,490 in Cicor Technologies on September 4, 2024 and sell it today you would earn a total of 1,470 from holding Cicor Technologies or generate 32.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Carlo Gavazzi Holding vs. Cicor Technologies
Performance |
| Timeline |
| Carlo Gavazzi Holding |
| Cicor Technologies |
Carlo Gavazzi and Cicor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlo Gavazzi and Cicor Technologies
The main advantage of trading using opposite Carlo Gavazzi and Cicor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlo Gavazzi 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.| Carlo Gavazzi vs. Bucher Industries AG | Carlo Gavazzi vs. Komax Holding AG | Carlo Gavazzi vs. Comet Holding AG | Carlo Gavazzi vs. Bachem Holding AG |
| Cicor Technologies vs. Implenia AG | Cicor Technologies vs. OC Oerlikon Corp | Cicor Technologies vs. Sulzer AG | Cicor Technologies vs. Swissquote Group Holding |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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