Correlation Between Cicor Technologies and Feintool International

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

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

Diversification Opportunities for Cicor Technologies and Feintool International

-0.76

Correlation Coefficient

Cicor Technologies  Feintool International

Pay attention - limited upside

The 3 months correlation between Cicor and Feintool is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Feintool International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feintool International 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 Feintool International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feintool International has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Feintool International go up and down completely randomly.

Pair Corralation between Cicor Technologies and Feintool International

Assuming the 90 days trading horizon Cicor Technologies is expected to generate 0.75 times more return on investment than Feintool International. However, Cicor Technologies is 1.34 times less risky than Feintool International. It trades about 0.08 of its potential returns per unit of risk. Feintool International Holding is currently generating about -0.15 per unit of risk. If you would invest  5,260  in Cicor Technologies on September 20, 2024 and sell it today you would earn a total of  360.00  from holding Cicor Technologies or generate 6.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Cicor Technologies  vs.  Feintool International Holding

Cicor Technologies

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cicor Technologies are ranked lower than 5 (%) 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.

Feintool International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Feintool International Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Cicor Technologies and Feintool International

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

The idea behind Cicor Technologies and Feintool International Holding 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.