Correlation Between Jungfraubahn Holding and Cicor Technologies
Can any of the company-specific risk be diversified away by investing in both Jungfraubahn 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 Jungfraubahn 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 Jungfraubahn Holding AG and Cicor Technologies, you can compare the effects of market volatilities on Jungfraubahn 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 Jungfraubahn Holding with a short position of Cicor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jungfraubahn Holding and Cicor Technologies.
Diversification Opportunities for Jungfraubahn Holding and Cicor Technologies
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jungfraubahn and Cicor is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jungfraubahn Holding AG and Cicor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cicor Technologies and Jungfraubahn 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 Jungfraubahn Holding AG 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 Jungfraubahn Holding i.e., Jungfraubahn Holding and Cicor Technologies go up and down completely randomly.
Pair Corralation between Jungfraubahn Holding and Cicor Technologies
Assuming the 90 days trading horizon Jungfraubahn Holding is expected to generate 1.63 times less return on investment than Cicor Technologies. In addition to that, Jungfraubahn Holding is 1.2 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 Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Jungfraubahn Holding AG vs. Cicor Technologies
Performance |
| Timeline |
| Jungfraubahn Holding |
| Cicor Technologies |
Jungfraubahn Holding and Cicor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jungfraubahn Holding and Cicor Technologies
The main advantage of trading using opposite Jungfraubahn Holding and Cicor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jungfraubahn 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.| Jungfraubahn Holding vs. Emmi AG | Jungfraubahn Holding vs. Flughafen Zurich | Jungfraubahn Holding vs. Bergbahnen Engelberg Truebsee | Jungfraubahn Holding vs. EMS CHEMIE HOLDING AG |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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