Correlation Between CIFI Holdings and Atrium Ljungberg
Can any of the company-specific risk be diversified away by investing in both CIFI Holdings and Atrium Ljungberg 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 Atrium Ljungberg 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 Atrium Ljungberg AB, you can compare the effects of market volatilities on CIFI Holdings and Atrium Ljungberg 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 Atrium Ljungberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIFI Holdings and Atrium Ljungberg.
Diversification Opportunities for CIFI Holdings and Atrium Ljungberg
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CIFI and Atrium is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding CIFI Holdings Co and Atrium Ljungberg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Ljungberg 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 Atrium Ljungberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Ljungberg has no effect on the direction of CIFI Holdings i.e., CIFI Holdings and Atrium Ljungberg go up and down completely randomly.
Pair Corralation between CIFI Holdings and Atrium Ljungberg
Assuming the 90 days horizon CIFI Holdings Co is expected to generate 4.58 times more return on investment than Atrium Ljungberg. However, CIFI Holdings is 4.58 times more volatile than Atrium Ljungberg AB. It trades about 0.03 of its potential returns per unit of risk. Atrium Ljungberg AB is currently generating about 0.06 per unit of risk. If you would invest 14.00 in CIFI Holdings Co on September 5, 2024 and sell it today you would lose (10.70) from holding CIFI Holdings Co or give up 76.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
CIFI Holdings Co vs. Atrium Ljungberg AB
Performance |
| Timeline |
| CIFI Holdings |
| Atrium Ljungberg |
CIFI Holdings and Atrium Ljungberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIFI Holdings and Atrium Ljungberg
The main advantage of trading using opposite CIFI Holdings and Atrium Ljungberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIFI Holdings position performs unexpectedly, Atrium Ljungberg 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 Atrium Ljungberg will offset losses from the drop in Atrium Ljungberg's long position.| CIFI Holdings vs. China Resources Land | CIFI Holdings vs. Atrium Ljungberg AB | CIFI Holdings vs. REDSUN PROPERTIES GROUP |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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