Correlation Between Atrium Ljungberg and CIFI Holdings
Can any of the company-specific risk be diversified away by investing in both Atrium Ljungberg 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 Atrium Ljungberg and CIFI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atrium Ljungberg AB and CIFI Holdings Co, you can compare the effects of market volatilities on Atrium Ljungberg 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 Atrium Ljungberg with a short position of CIFI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Ljungberg and CIFI Holdings.
Diversification Opportunities for Atrium Ljungberg and CIFI Holdings
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atrium and CIFI is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Ljungberg AB and CIFI Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIFI Holdings and Atrium Ljungberg 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 Atrium Ljungberg AB 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 Atrium Ljungberg i.e., Atrium Ljungberg and CIFI Holdings go up and down completely randomly.
Pair Corralation between Atrium Ljungberg and CIFI Holdings
Assuming the 90 days horizon Atrium Ljungberg is expected to generate 5.37 times less return on investment than CIFI Holdings. But when comparing it to its historical volatility, Atrium Ljungberg AB is 4.95 times less risky than CIFI Holdings. It trades about 0.02 of its potential returns per unit of risk. CIFI Holdings Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4.45 in CIFI Holdings Co on September 5, 2024 and sell it today you would lose (1.15) from holding CIFI Holdings Co or give up 25.84% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Atrium Ljungberg AB vs. CIFI Holdings Co
Performance |
Timeline |
Atrium Ljungberg |
CIFI Holdings |
Atrium Ljungberg and CIFI Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atrium Ljungberg and CIFI Holdings
The main advantage of trading using opposite Atrium Ljungberg and CIFI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Ljungberg 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.Atrium Ljungberg vs. Virtus Investment Partners | Atrium Ljungberg vs. CapitaLand Investment Limited | Atrium Ljungberg vs. WisdomTree Investments | Atrium Ljungberg vs. ANTA SPORTS PRODUCT |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |