Correlation Between Cicor Technologies and COSMO Pharmaceuticals

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

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

Diversification Opportunities for Cicor Technologies and COSMO Pharmaceuticals

0.54

Correlation Coefficient

Cicor Technologies  COSMO Pharmaceuticals

Very weak diversification

The 3 months correlation between Cicor and COSMO is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and COSMO Pharmaceuticals SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMO Pharmaceuticals 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 COSMO Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMO Pharmaceuticals has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and COSMO Pharmaceuticals go up and down completely randomly.

Pair Corralation between Cicor Technologies and COSMO Pharmaceuticals

Assuming the 90 days trading horizon Cicor Technologies is expected to generate 1.15 times more return on investment than COSMO Pharmaceuticals. However, Cicor Technologies is 1.15 times more volatile than COSMO Pharmaceuticals SA. It trades about 0.37 of its potential returns per unit of risk. COSMO Pharmaceuticals SA is currently generating about 0.22 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  8,530  from holding Cicor Technologies or generate 85.99% return on investment over 90 days.

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

Cicor Technologies  vs.  COSMO Pharmaceuticals SA

Cicor Technologies

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Cicor Technologies are ranked lower than 28 (%) 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.

COSMO Pharmaceuticals

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in COSMO Pharmaceuticals SA are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, COSMO Pharmaceuticals showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cicor Technologies and COSMO Pharmaceuticals

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

The idea behind Cicor Technologies and COSMO Pharmaceuticals SA 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.