Correlation Between Cicor Technologies and Graubuendner Kantonalbank

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

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

Diversification Opportunities for Cicor Technologies and Graubuendner Kantonalbank

0.27

Correlation Coefficient

Cicor Technologies  Graubuendner Kantonalbank

Modest diversification

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

Pair Corralation between Cicor Technologies and Graubuendner Kantonalbank

Assuming the 90 days trading horizon Cicor Technologies is expected to generate 2.78 times more return on investment than Graubuendner Kantonalbank. However, Cicor Technologies is 2.78 times more volatile than Graubuendner Kantonalbank. It trades about 0.19 of its potential returns per unit of risk. Graubuendner Kantonalbank is currently generating about 0.01 per unit of risk. If you would invest  5,280  in Cicor Technologies on October 26, 2024 and sell it today you would earn a total of  1,020  from holding Cicor Technologies or generate 19.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.28%
Values	Daily Returns

Cicor Technologies  vs.  Graubuendner Kantonalbank

Cicor Technologies

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cicor Technologies are ranked lower than 15 (%) 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.

Graubuendner Kantonalbank

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Graubuendner Kantonalbank has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Graubuendner Kantonalbank 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 Graubuendner Kantonalbank

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

The idea behind Cicor Technologies and Graubuendner 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.