Correlation Between CFI Holding and Gobarto SA
Can any of the company-specific risk be diversified away by investing in both CFI Holding and Gobarto 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 Gobarto 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 Gobarto SA, you can compare the effects of market volatilities on CFI Holding and Gobarto 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 Gobarto SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and Gobarto SA.
Diversification Opportunities for CFI Holding and Gobarto SA
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between CFI and Gobarto is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and Gobarto SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gobarto 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 Gobarto SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gobarto SA has no effect on the direction of CFI Holding i.e., CFI Holding and Gobarto SA go up and down completely randomly.
Pair Corralation between CFI Holding and Gobarto SA
Assuming the 90 days trading horizon CFI Holding is expected to generate 8.58 times less return on investment than Gobarto SA. But when comparing it to its historical volatility, CFI Holding SA is 1.05 times less risky than Gobarto SA. It trades about 0.01 of its potential returns per unit of risk. Gobarto SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 820.00 in Gobarto SA on November 2, 2024 and sell it today you would earn a total of 1,810 from holding Gobarto SA or generate 220.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CFI Holding SA vs. Gobarto SA
Performance |
| Timeline |
| CFI Holding SA |
| Gobarto SA |
CFI Holding and Gobarto SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and Gobarto SA
The main advantage of trading using opposite CFI Holding and Gobarto SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, Gobarto 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 Gobarto SA will offset losses from the drop in Gobarto SA's long position.| CFI Holding vs. Medicalg | CFI Holding vs. SOFTWARE MANSION SPOLKA | CFI Holding vs. BNP Paribas Bank | CFI Holding vs. PMPG Polskie Media |
| Gobarto SA vs. Gamedust SA | Gobarto SA vs. LSI Software SA | Gobarto SA vs. Drago entertainment SA | Gobarto SA vs. CI Games 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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