Correlation Between CFI Holding and Centrum Finansowe
Can any of the company-specific risk be diversified away by investing in both CFI Holding and Centrum Finansowe 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 Centrum Finansowe 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 Centrum Finansowe Banku, you can compare the effects of market volatilities on CFI Holding and Centrum Finansowe 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 Centrum Finansowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and Centrum Finansowe.
Diversification Opportunities for CFI Holding and Centrum Finansowe
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CFI and Centrum is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and Centrum Finansowe Banku in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centrum Finansowe Banku 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 Centrum Finansowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centrum Finansowe Banku has no effect on the direction of CFI Holding i.e., CFI Holding and Centrum Finansowe go up and down completely randomly.
Pair Corralation between CFI Holding and Centrum Finansowe
Assuming the 90 days trading horizon CFI Holding is expected to generate 9.42 times less return on investment than Centrum Finansowe. In addition to that, CFI Holding is 1.67 times more volatile than Centrum Finansowe Banku. It trades about 0.0 of its total potential returns per unit of risk. Centrum Finansowe Banku is currently generating about 0.06 per unit of volatility. If you would invest 369.00 in Centrum Finansowe Banku on September 2, 2024 and sell it today you would earn a total of 211.00 from holding Centrum Finansowe Banku or generate 57.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.46% |
| Values | Daily Returns |
CFI Holding SA vs. Centrum Finansowe Banku
Performance |
| Timeline |
| CFI Holding SA |
| Centrum Finansowe Banku |
CFI Holding and Centrum Finansowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and Centrum Finansowe
The main advantage of trading using opposite CFI Holding and Centrum Finansowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, Centrum Finansowe 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 Centrum Finansowe will offset losses from the drop in Centrum Finansowe'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 |
| Centrum Finansowe vs. Asseco Business Solutions | Centrum Finansowe vs. Detalion Games SA | Centrum Finansowe vs. Asseco South Eastern | Centrum Finansowe 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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