Correlation Between Cicor Technologies and Basellandschaftliche

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

By analyzing existing cross correlation between Cicor Technologies and Basellandschaftliche Kantonalbank, you can compare the effects of market volatilities on Cicor Technologies and Basellandschaftliche 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 Basellandschaftliche. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicor Technologies and Basellandschaftliche.

Diversification Opportunities for Cicor Technologies and Basellandschaftliche

0.27

Correlation Coefficient

Cicor Technologies  Basellandschaftliche

Modest diversification

The 3 months correlation between Cicor and Basellandschaftliche is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Basellandschaftliche Kantonalb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basellandschaftliche 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 Basellandschaftliche. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basellandschaftliche has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Basellandschaftliche go up and down completely randomly.

Pair Corralation between Cicor Technologies and Basellandschaftliche

Assuming the 90 days trading horizon Cicor Technologies is expected to generate 2.62 times more return on investment than Basellandschaftliche. However, Cicor Technologies is 2.62 times more volatile than Basellandschaftliche Kantonalbank. It trades about 0.04 of its potential returns per unit of risk. Basellandschaftliche Kantonalbank is currently generating about 0.01 per unit of risk. If you would invest  4,730  in Cicor Technologies on September 28, 2024 and sell it today you would earn a total of  890.00  from holding Cicor Technologies or generate 18.82% return on investment over 90 days.

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

Cicor Technologies  vs.  Basellandschaftliche Kantonalb

Cicor Technologies

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cicor Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Cicor Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Basellandschaftliche

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Basellandschaftliche Kantonalbank are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Basellandschaftliche 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 Basellandschaftliche

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

The idea behind Cicor Technologies and Basellandschaftliche Kantonalbank 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.

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.