Correlation Between Swissquote Group and Cicor Technologies
Can any of the company-specific risk be diversified away by investing in both Swissquote Group 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 Swissquote Group and Cicor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swissquote Group Holding and Cicor Technologies, you can compare the effects of market volatilities on Swissquote Group 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 Swissquote Group with a short position of Cicor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swissquote Group and Cicor Technologies.
Diversification Opportunities for Swissquote Group and Cicor Technologies
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Swissquote and Cicor is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Swissquote Group Holding and Cicor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cicor Technologies and Swissquote Group 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 Swissquote Group 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 Swissquote Group i.e., Swissquote Group and Cicor Technologies go up and down completely randomly.
Pair Corralation between Swissquote Group and Cicor Technologies
Assuming the 90 days trading horizon Swissquote Group Holding is expected to generate 1.34 times more return on investment than Cicor Technologies. However, Swissquote Group is 1.34 times more volatile than Cicor Technologies. It trades about 0.09 of its potential returns per unit of risk. Cicor Technologies is currently generating about 0.12 per unit of risk. If you would invest 29,180 in Swissquote Group Holding on September 5, 2024 and sell it today you would earn a total of 6,040 from holding Swissquote Group Holding or generate 20.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swissquote Group Holding vs. Cicor Technologies
Performance |
| Timeline |
| Swissquote Group Holding |
| Cicor Technologies |
Swissquote Group and Cicor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swissquote Group and Cicor Technologies
The main advantage of trading using opposite Swissquote Group and Cicor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swissquote Group 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.| Swissquote Group vs. Logitech International SA | Swissquote Group vs. Swiss Life Holding | Swissquote Group vs. VAT Group AG | Swissquote Group vs. Partners Group Holding |
| 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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