Correlation Between CFI Holding and Beta MWIG40TR
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By analyzing existing cross correlation between CFI Holding SA and Beta mWIG40TR Portfelowy, you can compare the effects of market volatilities on CFI Holding and Beta MWIG40TR 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 Beta MWIG40TR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and Beta MWIG40TR.
Diversification Opportunities for CFI Holding and Beta MWIG40TR
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CFI and Beta is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and Beta mWIG40TR Portfelowy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beta mWIG40TR Portfelowy 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 Beta MWIG40TR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beta mWIG40TR Portfelowy has no effect on the direction of CFI Holding i.e., CFI Holding and Beta MWIG40TR go up and down completely randomly.
Pair Corralation between CFI Holding and Beta MWIG40TR
Assuming the 90 days trading horizon CFI Holding SA is expected to under-perform the Beta MWIG40TR. In addition to that, CFI Holding is 3.27 times more volatile than Beta mWIG40TR Portfelowy. It trades about -0.05 of its total potential returns per unit of risk. Beta mWIG40TR Portfelowy is currently generating about -0.05 per unit of volatility. If you would invest 10,016 in Beta mWIG40TR Portfelowy on August 26, 2024 and sell it today you would lose (660.00) from holding Beta mWIG40TR Portfelowy or give up 6.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CFI Holding SA vs. Beta mWIG40TR Portfelowy
Performance |
| Timeline |
| CFI Holding SA |
| Beta mWIG40TR Portfelowy |
CFI Holding and Beta MWIG40TR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and Beta MWIG40TR
The main advantage of trading using opposite CFI Holding and Beta MWIG40TR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, Beta MWIG40TR 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 Beta MWIG40TR will offset losses from the drop in Beta MWIG40TR's long position.| CFI Holding vs. LSI Software SA | CFI Holding vs. Play2Chill SA | CFI Holding vs. Movie Games SA | CFI Holding vs. Noble Financials SA |
| Beta MWIG40TR vs. Asseco Business Solutions | Beta MWIG40TR vs. Detalion Games SA | Beta MWIG40TR vs. Asseco South Eastern | Beta MWIG40TR 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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