Correlation Between Cicor Technologies and Klingelnberg

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

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

Diversification Opportunities for Cicor Technologies and Klingelnberg

0.42

Correlation Coefficient

Cicor Technologies  Klingelnberg

Very weak diversification

The 3 months correlation between Cicor and Klingelnberg is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Klingelnberg AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klingelnberg 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 Klingelnberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klingelnberg AG has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Klingelnberg go up and down completely randomly.

Pair Corralation between Cicor Technologies and Klingelnberg

Assuming the 90 days trading horizon Cicor Technologies is expected to generate 1.4 times more return on investment than Klingelnberg. However, Cicor Technologies is 1.4 times more volatile than Klingelnberg AG. It trades about 0.33 of its potential returns per unit of risk. Klingelnberg AG is currently generating about 0.12 per unit of risk. If you would invest  10,150  in Cicor Technologies on April 25, 2025 and sell it today you would earn a total of  7,650  from holding Cicor Technologies or generate 75.37% 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.  Klingelnberg 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 25 (%) 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.

Klingelnberg AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Klingelnberg AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Klingelnberg showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cicor Technologies and Klingelnberg

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

The idea behind Cicor Technologies and Klingelnberg 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.