Correlation Between Cicor Technologies and Chocoladefabriken

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

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

Diversification Opportunities for Cicor Technologies and Chocoladefabriken

-0.73

Correlation Coefficient

Cicor Technologies  Chocoladefabriken

Pay attention - limited upside

The 3 months correlation between Cicor and Chocoladefabriken is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Chocoladefabriken Lindt Spruen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chocoladefabriken Lindt 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 Chocoladefabriken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chocoladefabriken Lindt has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Chocoladefabriken go up and down completely randomly.

Pair Corralation between Cicor Technologies and Chocoladefabriken

Assuming the 90 days trading horizon Cicor Technologies is expected to generate 1.19 times more return on investment than Chocoladefabriken. However, Cicor Technologies is 1.19 times more volatile than Chocoladefabriken Lindt Spruengli. It trades about 0.05 of its potential returns per unit of risk. Chocoladefabriken Lindt Spruengli is currently generating about 0.02 per unit of risk. If you would invest  4,480  in Cicor Technologies on October 9, 2024 and sell it today you would earn a total of  1,600  from holding Cicor Technologies or generate 35.71% 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.  Chocoladefabriken Lindt Spruen

Cicor Technologies

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Cicor Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Chocoladefabriken Lindt

Risk-Adjusted Performance

0 of 100

Very Weak

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

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

The idea behind Cicor Technologies and Chocoladefabriken Lindt Spruengli 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.