Correlation Between Cicor Technologies and Metall Zug

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

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

Diversification Opportunities for Cicor Technologies and Metall Zug

-0.74

Correlation Coefficient

Cicor Technologies  Metall Zug

Pay attention - limited upside

The 3 months correlation between Cicor and Metall is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Metall Zug AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metall Zug AG 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 Metall Zug. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metall Zug AG has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Metall Zug go up and down completely randomly.

Pair Corralation between Cicor Technologies and Metall Zug

Assuming the 90 days trading horizon Cicor Technologies is expected to generate 1.27 times more return on investment than Metall Zug. However, Cicor Technologies is 1.27 times more volatile than Metall Zug AG. It trades about 0.08 of its potential returns per unit of risk. Metall Zug AG is currently generating about -0.21 per unit of risk. If you would invest  5,840  in Cicor Technologies on October 11, 2024 and sell it today you would earn a total of  140.00  from holding Cicor Technologies or generate 2.4% 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.  Metall Zug AG

Cicor Technologies

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cicor Technologies are ranked lower than 10 (%) 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.

Metall Zug AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Metall Zug AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Cicor Technologies and Metall Zug

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

The idea behind Cicor Technologies and Metall Zug AG 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.