Correlation Between Swiss Leader and Cicor Technologies
Can any of the company-specific risk be diversified away by investing in both Swiss Leader 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 Swiss Leader and Cicor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Leader Price and Cicor Technologies, you can compare the effects of market volatilities on Swiss Leader 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 Swiss Leader with a short position of Cicor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Leader and Cicor Technologies.
Diversification Opportunities for Swiss Leader and Cicor Technologies
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swiss and Cicor is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Leader Price and Cicor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cicor Technologies and Swiss Leader 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 Swiss Leader Price 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 Swiss Leader i.e., Swiss Leader and Cicor Technologies go up and down completely randomly.
Pair Corralation between Swiss Leader and Cicor Technologies
Assuming the 90 days trading horizon Swiss Leader is expected to generate 1.82 times less return on investment than Cicor Technologies. But when comparing it to its historical volatility, Swiss Leader Price is 1.59 times less risky than Cicor Technologies. It trades about 0.04 of its potential returns per unit of risk. Cicor Technologies is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,590 in Cicor Technologies on August 28, 2024 and sell it today you would earn a total of 1,070 from holding Cicor Technologies or generate 23.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Swiss Leader Price vs. Cicor Technologies
Performance |
| Timeline |
Swiss Leader and Cicor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Swiss Leader Price
Pair trading matchups for Swiss Leader
Cicor Technologies
Pair trading matchups for Cicor Technologies
Pair Trading with Swiss Leader and Cicor Technologies
The main advantage of trading using opposite Swiss Leader and Cicor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Leader 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.| Swiss Leader vs. Liechtensteinische Landesbank AG | Swiss Leader vs. BB Biotech AG | Swiss Leader vs. Luzerner Kantonalbank AG | Swiss Leader vs. Swiss Steel Holding |
| Cicor Technologies vs. Santhera Pharmaceuticals Holding | Cicor Technologies vs. Newron Pharmaceuticals SpA | Cicor Technologies vs. Basilea Pharmaceutica AG | Cicor Technologies vs. Evolva Holding SA |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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