Correlation Between CIFI Holdings and REDSUN PROPERTIES
Can any of the company-specific risk be diversified away by investing in both CIFI Holdings and REDSUN PROPERTIES 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 CIFI Holdings and REDSUN PROPERTIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIFI Holdings Co and REDSUN PROPERTIES GROUP, you can compare the effects of market volatilities on CIFI Holdings and REDSUN PROPERTIES 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 CIFI Holdings with a short position of REDSUN PROPERTIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIFI Holdings and REDSUN PROPERTIES.
Diversification Opportunities for CIFI Holdings and REDSUN PROPERTIES
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CIFI and REDSUN is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding CIFI Holdings Co and REDSUN PROPERTIES GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REDSUN PROPERTIES and CIFI Holdings 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 CIFI Holdings Co are associated (or correlated) with REDSUN PROPERTIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REDSUN PROPERTIES has no effect on the direction of CIFI Holdings i.e., CIFI Holdings and REDSUN PROPERTIES go up and down completely randomly.
Pair Corralation between CIFI Holdings and REDSUN PROPERTIES
Assuming the 90 days horizon CIFI Holdings is expected to generate 6.72 times less return on investment than REDSUN PROPERTIES. But when comparing it to its historical volatility, CIFI Holdings Co is 3.96 times less risky than REDSUN PROPERTIES. It trades about 0.09 of its potential returns per unit of risk. REDSUN PROPERTIES GROUP is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 0.10 in REDSUN PROPERTIES GROUP on September 2, 2024 and sell it today you would earn a total of 0.10 from holding REDSUN PROPERTIES GROUP or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIFI Holdings Co vs. REDSUN PROPERTIES GROUP
Performance |
| Timeline |
| CIFI Holdings |
| REDSUN PROPERTIES |
CIFI Holdings and REDSUN PROPERTIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIFI Holdings and REDSUN PROPERTIES
The main advantage of trading using opposite CIFI Holdings and REDSUN PROPERTIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIFI Holdings position performs unexpectedly, REDSUN PROPERTIES 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 REDSUN PROPERTIES will offset losses from the drop in REDSUN PROPERTIES's long position.| CIFI Holdings vs. TOREX SEMICONDUCTOR LTD | CIFI Holdings vs. Ping An Insurance | CIFI Holdings vs. Reinsurance Group of | CIFI Holdings vs. Nordic Semiconductor ASA |
| REDSUN PROPERTIES vs. SBA Communications Corp | REDSUN PROPERTIES vs. Verizon Communications | REDSUN PROPERTIES vs. Cogent Communications Holdings | REDSUN PROPERTIES vs. GREENX METALS LTD |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |