Correlation Between Bucher Industries and Cicor Technologies

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

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

Diversification Opportunities for Bucher Industries and Cicor Technologies

0.7

Correlation Coefficient

Bucher Industries  Cicor Technologies

Poor diversification

The 3 months correlation between Bucher and Cicor is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bucher Industries AG and Cicor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cicor Technologies and Bucher Industries 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 Bucher Industries 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 Bucher Industries i.e., Bucher Industries and Cicor Technologies go up and down completely randomly.

Pair Corralation between Bucher Industries and Cicor Technologies

Assuming the 90 days trading horizon Bucher Industries is expected to generate 3.59 times less return on investment than Cicor Technologies. But when comparing it to its historical volatility, Bucher Industries AG is 2.45 times less risky than Cicor Technologies. It trades about 0.26 of its potential returns per unit of risk. Cicor Technologies is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest  9,840  in Cicor Technologies on April 23, 2025 and sell it today you would earn a total of  8,810  from holding Cicor Technologies or generate 89.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Bucher Industries AG  vs.  Cicor Technologies

Bucher Industries

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bucher Industries AG are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Bucher Industries showed solid returns over the last few months and may actually be approaching a breakup point.

Cicor Technologies

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Cicor Technologies are ranked lower than 29 (%) 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.

Pair Trading with Bucher Industries and Cicor Technologies

The main advantage of trading using opposite Bucher Industries and Cicor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bucher Industries 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.

The idea behind Bucher Industries AG and Cicor Technologies 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.