Correlation Between CFI Holding and 4Mass SA
Can any of the company-specific risk be diversified away by investing in both CFI Holding and 4Mass SA 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 CFI Holding and 4Mass SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CFI Holding SA and 4Mass SA, you can compare the effects of market volatilities on CFI Holding and 4Mass SA 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 CFI Holding with a short position of 4Mass SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and 4Mass SA.
Diversification Opportunities for CFI Holding and 4Mass SA
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CFI and 4Mass is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and 4Mass SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4Mass SA and CFI 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 CFI Holding SA are associated (or correlated) with 4Mass SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4Mass SA has no effect on the direction of CFI Holding i.e., CFI Holding and 4Mass SA go up and down completely randomly.
Pair Corralation between CFI Holding and 4Mass SA
Assuming the 90 days trading horizon CFI Holding SA is expected to under-perform the 4Mass SA. In addition to that, CFI Holding is 3.15 times more volatile than 4Mass SA. It trades about -0.05 of its total potential returns per unit of risk. 4Mass SA is currently generating about 0.05 per unit of volatility. If you would invest 617.00 in 4Mass SA on September 2, 2024 and sell it today you would earn a total of 26.00 from holding 4Mass SA or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
CFI Holding SA vs. 4Mass SA
Performance |
| Timeline |
| CFI Holding SA |
| 4Mass SA |
CFI Holding and 4Mass SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and 4Mass SA
The main advantage of trading using opposite CFI Holding and 4Mass SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, 4Mass SA 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 4Mass SA will offset losses from the drop in 4Mass SA's long position.| CFI Holding vs. CI Games SA | CFI Holding vs. SOFTWARE MANSION SPOLKA | CFI Holding vs. BNP Paribas Bank | CFI Holding vs. Varsav Game Studios |
| 4Mass SA vs. Asseco Business Solutions | 4Mass SA vs. Detalion Games SA | 4Mass SA vs. Asseco South Eastern | 4Mass SA vs. CFI Holding 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |