Correlation Between Cicor Technologies and Banque Cantonale

Can any of the company-specific risk be diversified away by investing in both Cicor Technologies and Banque Cantonale 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 Cicor Technologies and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cicor Technologies and Banque Cantonale de, you can compare the effects of market volatilities on Cicor Technologies and Banque Cantonale 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 Cicor Technologies with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicor Technologies and Banque Cantonale.

Diversification Opportunities for Cicor Technologies and Banque Cantonale

-0.76

Correlation Coefficient

Cicor Technologies  Banque Cantonale

Pay attention - limited upside

The 3 months correlation between Cicor and Banque is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Banque Cantonale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Cicor Technologies 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 Cicor Technologies are associated (or correlated) with Banque Cantonale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque Cantonale has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Banque Cantonale go up and down completely randomly.

Pair Corralation between Cicor Technologies and Banque Cantonale

Assuming the 90 days trading horizon Cicor Technologies is expected to generate 1.43 times more return on investment than Banque Cantonale. However, Cicor Technologies is 1.43 times more volatile than Banque Cantonale de. It trades about 0.15 of its potential returns per unit of risk. Banque Cantonale de is currently generating about -0.12 per unit of risk. If you would invest  5,040  in Cicor Technologies on September 5, 2024 and sell it today you would earn a total of  960.00  from holding Cicor Technologies or generate 19.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Cicor Technologies  vs.  Banque Cantonale de

Cicor Technologies

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cicor Technologies are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Cicor Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Banque Cantonale

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Banque Cantonale de has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Banque Cantonale is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Cicor Technologies and Banque Cantonale

The main advantage of trading using opposite Cicor Technologies and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicor Technologies position performs unexpectedly, Banque Cantonale 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 Banque Cantonale will offset losses from the drop in Banque Cantonale's long position.

The idea behind Cicor Technologies and Banque Cantonale de pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.