Correlation Between Cicor Technologies and Luzerner Kantonalbank
Can any of the company-specific risk be diversified away by investing in both Cicor Technologies and Luzerner 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 Luzerner 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 Luzerner Kantonalbank AG, you can compare the effects of market volatilities on Cicor Technologies and Luzerner 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 Luzerner Kantonalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicor Technologies and Luzerner Kantonalbank.
Diversification Opportunities for Cicor Technologies and Luzerner Kantonalbank
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cicor and Luzerner is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Luzerner Kantonalbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luzerner 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 Luzerner Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luzerner Kantonalbank has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Luzerner Kantonalbank go up and down completely randomly.
Pair Corralation between Cicor Technologies and Luzerner Kantonalbank
Assuming the 90 days trading horizon Cicor Technologies is expected to generate 2.14 times more return on investment than Luzerner Kantonalbank. However, Cicor Technologies is 2.14 times more volatile than Luzerner Kantonalbank AG. It trades about 0.06 of its potential returns per unit of risk. Luzerner Kantonalbank AG is currently generating about 0.05 per unit of risk. If you would invest 5,340 in Cicor Technologies on September 19, 2024 and sell it today you would earn a total of 260.00 from holding Cicor Technologies or generate 4.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Cicor Technologies vs. Luzerner Kantonalbank AG
Performance |
Timeline |
Cicor Technologies |
Luzerner Kantonalbank |
Cicor Technologies and Luzerner Kantonalbank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cicor Technologies and Luzerner Kantonalbank
The main advantage of trading using opposite Cicor Technologies and Luzerner Kantonalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicor Technologies position performs unexpectedly, Luzerner 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 Luzerner Kantonalbank will offset losses from the drop in Luzerner Kantonalbank's long position.Cicor Technologies vs. Comet Holding AG | Cicor Technologies vs. Also Holding AG | Cicor Technologies vs. Komax Holding AG | Cicor Technologies vs. Bucher Industries AG |
Luzerner Kantonalbank vs. Banque Cantonale | Luzerner Kantonalbank vs. St Galler Kantonalbank | Luzerner Kantonalbank vs. Berner Kantonalbank AG |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |