Correlation Between Astarta Holding and CFI Holding
Can any of the company-specific risk be diversified away by investing in both Astarta Holding 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 Astarta Holding and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astarta Holding NV and CFI Holding SA, you can compare the effects of market volatilities on Astarta Holding 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 Astarta Holding with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astarta Holding and CFI Holding.
Diversification Opportunities for Astarta Holding and CFI Holding
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astarta and CFI is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Astarta Holding NV 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 Astarta Holding 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 Astarta Holding NV 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 Astarta Holding i.e., Astarta Holding and CFI Holding go up and down completely randomly.
Pair Corralation between Astarta Holding and CFI Holding
Assuming the 90 days trading horizon Astarta Holding NV is expected to generate 0.44 times more return on investment than CFI Holding. However, Astarta Holding NV is 2.29 times less risky than CFI Holding. It trades about 0.25 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 2,960 in Astarta Holding NV on September 12, 2024 and sell it today you would earn a total of 1,120 from holding Astarta Holding NV or generate 37.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astarta Holding NV vs. CFI Holding SA
Performance |
| Timeline |
| Astarta Holding NV |
| CFI Holding SA |
Astarta Holding and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astarta Holding and CFI Holding
The main advantage of trading using opposite Astarta Holding and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astarta Holding 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.| Astarta Holding vs. LSI Software SA | Astarta Holding vs. Saule Technologies SA | Astarta Holding vs. Immobile | Astarta Holding vs. Enter Air 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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