Correlation Between Cairo Communication and Supermarket Income
Can any of the company-specific risk be diversified away by investing in both Cairo Communication and Supermarket Income 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 Cairo Communication and Supermarket Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cairo Communication SpA and Supermarket Income REIT, you can compare the effects of market volatilities on Cairo Communication and Supermarket Income 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 Cairo Communication with a short position of Supermarket Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cairo Communication and Supermarket Income.
Diversification Opportunities for Cairo Communication and Supermarket Income
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cairo and Supermarket is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cairo Communication SpA and Supermarket Income REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supermarket Income REIT and Cairo Communication 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 Cairo Communication SpA are associated (or correlated) with Supermarket Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supermarket Income REIT has no effect on the direction of Cairo Communication i.e., Cairo Communication and Supermarket Income go up and down completely randomly.
Pair Corralation between Cairo Communication and Supermarket Income
Assuming the 90 days trading horizon Cairo Communication SpA is expected to generate 1.05 times more return on investment than Supermarket Income. However, Cairo Communication is 1.05 times more volatile than Supermarket Income REIT. It trades about 0.07 of its potential returns per unit of risk. Supermarket Income REIT is currently generating about 0.0 per unit of risk. If you would invest 156.00 in Cairo Communication SpA on September 2, 2024 and sell it today you would earn a total of 80.00 from holding Cairo Communication SpA or generate 51.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cairo Communication SpA vs. Supermarket Income REIT
Performance |
| Timeline |
| Cairo Communication SpA |
| Supermarket Income REIT |
Cairo Communication and Supermarket Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cairo Communication and Supermarket Income
The main advantage of trading using opposite Cairo Communication and Supermarket Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cairo Communication position performs unexpectedly, Supermarket Income 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 Supermarket Income will offset losses from the drop in Supermarket Income's long position.| Cairo Communication vs. Uniper SE | Cairo Communication vs. Mulberry Group PLC | Cairo Communication vs. London Security Plc | Cairo Communication vs. Triad Group PLC |
| Supermarket Income vs. Derwent London PLC | Supermarket Income vs. Workspace Group PLC | Supermarket Income vs. Diversified Energy | Supermarket Income vs. Thyssenkrupp AG ON |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |