Correlation Between Altustfi and CFI Holding
Can any of the company-specific risk be diversified away by investing in both Altustfi 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 Altustfi and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altustfi and CFI Holding SA, you can compare the effects of market volatilities on Altustfi 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 Altustfi with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altustfi and CFI Holding.
Diversification Opportunities for Altustfi and CFI Holding
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Altustfi and CFI is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Altustfi 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 Altustfi 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 Altustfi 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 Altustfi i.e., Altustfi and CFI Holding go up and down completely randomly.
Pair Corralation between Altustfi and CFI Holding
Assuming the 90 days trading horizon Altustfi is expected to generate 0.88 times more return on investment than CFI Holding. However, Altustfi is 1.13 times less risky than CFI Holding. It trades about 0.03 of its potential returns per unit of risk. CFI Holding SA is currently generating about 0.0 per unit of risk. If you would invest 190.00 in Altustfi on August 31, 2024 and sell it today you would earn a total of 41.00 from holding Altustfi or generate 21.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altustfi vs. CFI Holding SA
Performance |
| Timeline |
| Altustfi |
| CFI Holding SA |
Altustfi and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altustfi and CFI Holding
The main advantage of trading using opposite Altustfi and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altustfi 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.| Altustfi vs. Road Studio SA | Altustfi vs. Quantum Software SA | Altustfi vs. Santander Bank Polska | Altustfi vs. LSI Software SA |
| CFI Holding vs. Intersport Polska SA | CFI Holding vs. Pyramid Games SA | CFI Holding vs. Live Motion Games | CFI Holding vs. SOFTWARE MANSION SPOLKA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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