Correlation Between CFI Holding and Amica SA
Can any of the company-specific risk be diversified away by investing in both CFI Holding and Amica 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 Amica 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 Amica SA, you can compare the effects of market volatilities on CFI Holding and Amica 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 Amica SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and Amica SA.
Diversification Opportunities for CFI Holding and Amica SA
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between CFI and Amica is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and Amica SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amica 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 Amica SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amica SA has no effect on the direction of CFI Holding i.e., CFI Holding and Amica SA go up and down completely randomly.
Pair Corralation between CFI Holding and Amica SA
Assuming the 90 days trading horizon CFI Holding SA is expected to under-perform the Amica SA. In addition to that, CFI Holding is 2.1 times more volatile than Amica SA. It trades about -0.02 of its total potential returns per unit of risk. Amica SA is currently generating about -0.03 per unit of volatility. If you would invest 7,118 in Amica SA on August 26, 2024 and sell it today you would lose (1,058) from holding Amica SA or give up 14.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CFI Holding SA vs. Amica SA
Performance |
| Timeline |
| CFI Holding SA |
| Amica SA |
CFI Holding and Amica SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and Amica SA
The main advantage of trading using opposite CFI Holding and Amica SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, Amica 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 Amica SA will offset losses from the drop in Amica SA's long position.| CFI Holding vs. Carlson Investments SA | CFI Holding vs. GreenX Metals | CFI Holding vs. Globe Trade Centre | CFI Holding vs. Marie Brizard Wine |
| Amica SA vs. Asseco South Eastern | Amica SA vs. Vercom SA | Amica SA vs. CFI Holding SA | Amica SA vs. Gobarto 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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