Correlation Between Corem Property and Cibus Nordic

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

By analyzing existing cross correlation between Corem Property Group and Cibus Nordic Real, you can compare the effects of market volatilities on Corem Property and Cibus Nordic 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 Corem Property with a short position of Cibus Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corem Property and Cibus Nordic.

Diversification Opportunities for Corem Property and Cibus Nordic

0.93

Correlation Coefficient

Corem Property  Cibus Nordic

Almost no diversification

The 3 months correlation between Corem and Cibus is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Corem Property Group and Cibus Nordic Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibus Nordic Real and Corem Property 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 Corem Property Group are associated (or correlated) with Cibus Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibus Nordic Real has no effect on the direction of Corem Property i.e., Corem Property and Cibus Nordic go up and down completely randomly.

Pair Corralation between Corem Property and Cibus Nordic

Assuming the 90 days trading horizon Corem Property Group is expected to generate 0.96 times more return on investment than Cibus Nordic. However, Corem Property Group is 1.04 times less risky than Cibus Nordic. It trades about 0.21 of its potential returns per unit of risk. Cibus Nordic Real is currently generating about 0.2 per unit of risk. If you would invest  20,734  in Corem Property Group on April 22, 2025 and sell it today you would earn a total of  2,966  from holding Corem Property Group or generate 14.31% return on investment over 90 days.

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

Corem Property Group  vs.  Cibus Nordic Real

Corem Property Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Corem Property Group are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Corem Property reported solid returns over the last few months and may actually be approaching a breakup point.

Cibus Nordic Real

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cibus Nordic Real are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Cibus Nordic unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Corem Property and Cibus Nordic

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

The idea behind Corem Property Group and Cibus Nordic Real 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.