Correlation Between CFI Holding and Gremi Media
Can any of the company-specific risk be diversified away by investing in both CFI Holding and Gremi Media 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 Gremi Media 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 Gremi Media SA, you can compare the effects of market volatilities on CFI Holding and Gremi Media 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 Gremi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and Gremi Media.
Diversification Opportunities for CFI Holding and Gremi Media
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CFI and Gremi is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and Gremi Media SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gremi Media 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 Gremi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gremi Media SA has no effect on the direction of CFI Holding i.e., CFI Holding and Gremi Media go up and down completely randomly.
Pair Corralation between CFI Holding and Gremi Media
Assuming the 90 days trading horizon CFI Holding SA is expected to under-perform the Gremi Media. In addition to that, CFI Holding is 3.84 times more volatile than Gremi Media SA. It trades about -0.04 of its total potential returns per unit of risk. Gremi Media SA is currently generating about 0.01 per unit of volatility. If you would invest 5,300 in Gremi Media SA on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Gremi Media SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 30.0% |
| Values | Daily Returns |
CFI Holding SA vs. Gremi Media SA
Performance |
| Timeline |
| CFI Holding SA |
| Gremi Media SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CFI Holding and Gremi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and Gremi Media
The main advantage of trading using opposite CFI Holding and Gremi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, Gremi Media 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 Gremi Media will offset losses from the drop in Gremi Media's 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 |
| Gremi Media vs. Asseco Business Solutions | Gremi Media vs. Detalion Games SA | Gremi Media vs. CFI Holding SA | Gremi Media vs. HM Inwest 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 CEOs Directory module to screen CEOs from public companies around the world.
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