Correlation Between Berner Kantonalbank and Cicor Technologies
Can any of the company-specific risk be diversified away by investing in both Berner Kantonalbank and Cicor Technologies 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 Berner Kantonalbank and Cicor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berner Kantonalbank AG and Cicor Technologies, you can compare the effects of market volatilities on Berner Kantonalbank and Cicor Technologies 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 Berner Kantonalbank with a short position of Cicor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berner Kantonalbank and Cicor Technologies.
Diversification Opportunities for Berner Kantonalbank and Cicor Technologies
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Berner and Cicor is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Berner Kantonalbank AG and Cicor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cicor Technologies and Berner Kantonalbank 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 Berner Kantonalbank AG are associated (or correlated) with Cicor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cicor Technologies has no effect on the direction of Berner Kantonalbank i.e., Berner Kantonalbank and Cicor Technologies go up and down completely randomly.
Pair Corralation between Berner Kantonalbank and Cicor Technologies
Assuming the 90 days trading horizon Berner Kantonalbank AG is expected to generate 0.38 times more return on investment than Cicor Technologies. However, Berner Kantonalbank AG is 2.63 times less risky than Cicor Technologies. It trades about 0.0 of its potential returns per unit of risk. Cicor Technologies is currently generating about -0.06 per unit of risk. If you would invest 23,200 in Berner Kantonalbank AG on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Berner Kantonalbank AG or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Berner Kantonalbank AG vs. Cicor Technologies
Performance |
Timeline |
Berner Kantonalbank |
Cicor Technologies |
Berner Kantonalbank and Cicor Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Berner Kantonalbank and Cicor Technologies
The main advantage of trading using opposite Berner Kantonalbank and Cicor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berner Kantonalbank position performs unexpectedly, Cicor Technologies 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 Cicor Technologies will offset losses from the drop in Cicor Technologies' long position.Berner Kantonalbank vs. Banque Cantonale | Berner Kantonalbank vs. St Galler Kantonalbank | Berner Kantonalbank vs. Valiant Holding AG | Berner Kantonalbank vs. Graubuendner Kantonalbank |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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