Correlation Between CBH and Sofina Société
Can any of the company-specific risk be diversified away by investing in both CBH and Sofina Société 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 CBH and Sofina Société into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Sofina Socit Anonyme, you can compare the effects of market volatilities on CBH and Sofina Société 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 CBH with a short position of Sofina Société. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Sofina Société.
Diversification Opportunities for CBH and Sofina Société
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CBH and Sofina is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Sofina Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sofina Socit Anonyme and CBH 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 CBH are associated (or correlated) with Sofina Société. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sofina Socit Anonyme has no effect on the direction of CBH i.e., CBH and Sofina Société go up and down completely randomly.
Pair Corralation between CBH and Sofina Société
If you would invest 919.00 in CBH on September 1, 2024 and sell it today you would earn a total of 0.00 from holding CBH or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
CBH vs. Sofina Socit Anonyme
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sofina Socit Anonyme |
CBH and Sofina Société Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Sofina Société
The main advantage of trading using opposite CBH and Sofina Société positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Sofina Société 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 Sofina Société will offset losses from the drop in Sofina Société's long position.| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
| Sofina Société vs. Marygold Companies | Sofina Société vs. Carbon Streaming Corp | Sofina Société vs. Arrowmark Financial Corp | Sofina Société vs. Patria Investments |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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