Correlation Between Creativeforge Games and CFI Holding
Can any of the company-specific risk be diversified away by investing in both Creativeforge Games 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 Creativeforge Games and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creativeforge Games SA and CFI Holding SA, you can compare the effects of market volatilities on Creativeforge Games 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 Creativeforge Games with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creativeforge Games and CFI Holding.
Diversification Opportunities for Creativeforge Games and CFI Holding
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Creativeforge and CFI is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Creativeforge Games SA 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 Creativeforge Games 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 Creativeforge Games SA 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 Creativeforge Games i.e., Creativeforge Games and CFI Holding go up and down completely randomly.
Pair Corralation between Creativeforge Games and CFI Holding
Assuming the 90 days trading horizon Creativeforge Games SA is expected to under-perform the CFI Holding. But the stock apears to be less risky and, when comparing its historical volatility, Creativeforge Games SA is 1.06 times less risky than CFI Holding. The stock trades about -0.09 of its potential returns per unit of risk. The CFI Holding SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 22.00 in CFI Holding SA on August 31, 2024 and sell it today you would lose (5.00) from holding CFI Holding SA or give up 22.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Creativeforge Games SA vs. CFI Holding SA
Performance |
| Timeline |
| Creativeforge Games |
| CFI Holding SA |
Creativeforge Games and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creativeforge Games and CFI Holding
The main advantage of trading using opposite Creativeforge Games and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creativeforge Games 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.| Creativeforge Games vs. ECC Games SA | Creativeforge Games vs. Asseco Business Solutions | Creativeforge Games vs. Detalion Games SA | Creativeforge Games vs. Asseco South Eastern |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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