Correlation Between St Galler and Cicor Technologies
Can any of the company-specific risk be diversified away by investing in both St Galler 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 St Galler and Cicor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Galler Kantonalbank and Cicor Technologies, you can compare the effects of market volatilities on St Galler 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 St Galler with a short position of Cicor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Cicor Technologies.
Diversification Opportunities for St Galler and Cicor Technologies
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SGKN and Cicor is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and Cicor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cicor Technologies and St Galler 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 St Galler Kantonalbank 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 St Galler i.e., St Galler and Cicor Technologies go up and down completely randomly.
Pair Corralation between St Galler and Cicor Technologies
Assuming the 90 days trading horizon St Galler is expected to generate 6.02 times less return on investment than Cicor Technologies. But when comparing it to its historical volatility, St Galler Kantonalbank is 2.22 times less risky than Cicor Technologies. It trades about 0.05 of its potential returns per unit of risk. Cicor Technologies is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 5,180 in Cicor Technologies on September 3, 2024 and sell it today you would earn a total of 720.00 from holding Cicor Technologies or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
St Galler Kantonalbank vs. Cicor Technologies
Performance |
| Timeline |
| St Galler Kantonalbank |
| Cicor Technologies |
St Galler and Cicor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Cicor Technologies
The main advantage of trading using opposite St Galler and Cicor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler 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.| St Galler vs. Banque Cantonale | St Galler vs. Luzerner Kantonalbank AG | St Galler vs. Berner Kantonalbank AG | St Galler vs. Helvetia Holding AG |
| Cicor Technologies vs. Comet Holding AG | Cicor Technologies vs. Also Holding AG | Cicor Technologies vs. Komax Holding AG | Cicor Technologies vs. Bucher Industries AG |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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