Correlation Between Cicor Technologies and Calida Holding

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

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

Diversification Opportunities for Cicor Technologies and Calida Holding

-0.57

Correlation Coefficient

Cicor Technologies  Calida Holding

Excellent diversification

The 3 months correlation between Cicor and Calida is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Calida Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calida Holding 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 Calida Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calida Holding AG has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Calida Holding go up and down completely randomly.

Pair Corralation between Cicor Technologies and Calida Holding

Assuming the 90 days trading horizon Cicor Technologies is expected to generate 1.35 times more return on investment than Calida Holding. However, Cicor Technologies is 1.35 times more volatile than Calida Holding AG. It trades about 0.34 of its potential returns per unit of risk. Calida Holding AG is currently generating about -0.04 per unit of risk. If you would invest  9,920  in Cicor Technologies on April 24, 2025 and sell it today you would earn a total of  7,880  from holding Cicor Technologies or generate 79.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Cicor Technologies  vs.  Calida Holding AG

Cicor Technologies

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Cicor Technologies are ranked lower than 26 (%) 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.

Calida Holding AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calida Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Calida Holding is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Cicor Technologies and Calida Holding

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

The idea behind Cicor Technologies and Calida Holding 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 Commodity Directory module to find actively traded commodities issued by global exchanges.