Correlation Between Agroton Public and CFI Holding
Can any of the company-specific risk be diversified away by investing in both Agroton Public and CFI Holding 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 Agroton Public and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agroton Public and CFI Holding SA, you can compare the effects of market volatilities on Agroton Public and CFI Holding 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 Agroton Public with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agroton Public and CFI Holding.
Diversification Opportunities for Agroton Public and CFI Holding
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agroton and CFI is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Agroton Public and CFI Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CFI Holding SA and Agroton Public 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 Agroton Public are associated (or correlated) with CFI Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CFI Holding SA has no effect on the direction of Agroton Public i.e., Agroton Public and CFI Holding go up and down completely randomly.
Pair Corralation between Agroton Public and CFI Holding
Assuming the 90 days trading horizon Agroton Public is expected to generate 0.58 times more return on investment than CFI Holding. However, Agroton Public is 1.72 times less risky than CFI Holding. It trades about 0.08 of its potential returns per unit of risk. CFI Holding SA is currently generating about -0.03 per unit of risk. If you would invest 347.00 in Agroton Public on September 12, 2024 and sell it today you would earn a total of 42.00 from holding Agroton Public or generate 12.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agroton Public vs. CFI Holding SA
Performance |
| Timeline |
| Agroton Public |
| CFI Holding SA |
Agroton Public and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agroton Public and CFI Holding
The main advantage of trading using opposite Agroton Public and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agroton Public position performs unexpectedly, CFI Holding 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 CFI Holding will offset losses from the drop in CFI Holding's long position.| Agroton Public vs. Astarta Holding NV | Agroton Public vs. Asseco Business Solutions | Agroton Public vs. Detalion Games SA | Agroton Public vs. Kogeneracja SA |
| CFI Holding vs. Igoria Trade SA | CFI Holding vs. ING Bank lski | CFI Holding vs. Drago entertainment SA | CFI Holding vs. Enter Air SA |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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