Correlation Between CFI Holding and Detalion Games
Can any of the company-specific risk be diversified away by investing in both CFI Holding and Detalion Games 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 Detalion Games 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 Detalion Games SA, you can compare the effects of market volatilities on CFI Holding and Detalion Games 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 Detalion Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and Detalion Games.
Diversification Opportunities for CFI Holding and Detalion Games
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CFI and Detalion is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and Detalion Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Detalion Games 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 Detalion Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Detalion Games SA has no effect on the direction of CFI Holding i.e., CFI Holding and Detalion Games go up and down completely randomly.
Pair Corralation between CFI Holding and Detalion Games
Assuming the 90 days trading horizon CFI Holding SA is expected to generate 1.02 times more return on investment than Detalion Games. However, CFI Holding is 1.02 times more volatile than Detalion Games SA. It trades about -0.04 of its potential returns per unit of risk. Detalion Games SA is currently generating about -0.27 per unit of risk. If you would invest 20.00 in CFI Holding SA on August 30, 2024 and sell it today you would lose (2.00) from holding CFI Holding SA or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 65.0% |
| Values | Daily Returns |
CFI Holding SA vs. Detalion Games SA
Performance |
| Timeline |
| CFI Holding SA |
| Detalion Games SA |
CFI Holding and Detalion Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and Detalion Games
The main advantage of trading using opposite CFI Holding and Detalion Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, Detalion Games 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 Detalion Games will offset losses from the drop in Detalion Games' long position.| CFI Holding vs. Tower Investments SA | CFI Holding vs. Centrum Finansowe Banku | CFI Holding vs. Alior Bank SA | CFI Holding vs. Santander Bank Polska |
| Detalion Games vs. Banco Santander SA | Detalion Games vs. UniCredit SpA | Detalion Games vs. CEZ as | Detalion Games vs. Polski Koncern Naftowy |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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