Correlation Between REDSUN PROPERTIES and CIFI Holdings
Can any of the company-specific risk be diversified away by investing in both REDSUN PROPERTIES and CIFI Holdings 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 REDSUN PROPERTIES and CIFI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REDSUN PROPERTIES GROUP and CIFI Holdings Co, you can compare the effects of market volatilities on REDSUN PROPERTIES and CIFI Holdings 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 REDSUN PROPERTIES with a short position of CIFI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of REDSUN PROPERTIES and CIFI Holdings.
Diversification Opportunities for REDSUN PROPERTIES and CIFI Holdings
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between REDSUN and CIFI is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding REDSUN PROPERTIES GROUP and CIFI Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIFI Holdings and REDSUN PROPERTIES 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 REDSUN PROPERTIES GROUP are associated (or correlated) with CIFI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIFI Holdings has no effect on the direction of REDSUN PROPERTIES i.e., REDSUN PROPERTIES and CIFI Holdings go up and down completely randomly.
Pair Corralation between REDSUN PROPERTIES and CIFI Holdings
Assuming the 90 days horizon REDSUN PROPERTIES GROUP is expected to generate 4.37 times more return on investment than CIFI Holdings. However, REDSUN PROPERTIES is 4.37 times more volatile than CIFI Holdings Co. It trades about 0.11 of its potential returns per unit of risk. CIFI Holdings Co is currently generating about 0.02 per unit of risk. If you would invest 0.45 in REDSUN PROPERTIES GROUP on September 5, 2024 and sell it today you would lose (0.25) from holding REDSUN PROPERTIES GROUP or give up 55.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
REDSUN PROPERTIES GROUP vs. CIFI Holdings Co
Performance |
| Timeline |
| REDSUN PROPERTIES |
| CIFI Holdings |
REDSUN PROPERTIES and CIFI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REDSUN PROPERTIES and CIFI Holdings
The main advantage of trading using opposite REDSUN PROPERTIES and CIFI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REDSUN PROPERTIES position performs unexpectedly, CIFI Holdings 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 CIFI Holdings will offset losses from the drop in CIFI Holdings' long position.| REDSUN PROPERTIES vs. AVITA Medical | REDSUN PROPERTIES vs. Avanos Medical | REDSUN PROPERTIES vs. Ribbon Communications | REDSUN PROPERTIES vs. Gamma Communications plc |
| CIFI Holdings vs. Lamar Advertising | CIFI Holdings vs. CarsalesCom | CIFI Holdings vs. Cardinal Health | CIFI Holdings vs. Gruppo Mutuionline SpA |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |