Correlation Between CFI Holding and Igoria Trade
Can any of the company-specific risk be diversified away by investing in both CFI Holding and Igoria Trade 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 Igoria Trade 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 Igoria Trade SA, you can compare the effects of market volatilities on CFI Holding and Igoria Trade 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 Igoria Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and Igoria Trade.
Diversification Opportunities for CFI Holding and Igoria Trade
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CFI and Igoria is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and Igoria Trade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Igoria Trade 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 Igoria Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Igoria Trade SA has no effect on the direction of CFI Holding i.e., CFI Holding and Igoria Trade go up and down completely randomly.
Pair Corralation between CFI Holding and Igoria Trade
Assuming the 90 days trading horizon CFI Holding SA is expected to under-perform the Igoria Trade. In addition to that, CFI Holding is 1.02 times more volatile than Igoria Trade SA. It trades about -0.04 of its total potential returns per unit of risk. Igoria Trade SA is currently generating about -0.02 per unit of volatility. If you would invest 31.00 in Igoria Trade SA on August 29, 2024 and sell it today you would lose (5.00) from holding Igoria Trade SA or give up 16.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CFI Holding SA vs. Igoria Trade SA
Performance |
| Timeline |
| CFI Holding SA |
| Igoria Trade SA |
CFI Holding and Igoria Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and Igoria Trade
The main advantage of trading using opposite CFI Holding and Igoria Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, Igoria Trade 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 Igoria Trade will offset losses from the drop in Igoria Trade'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 |
| Igoria Trade vs. NGG | Igoria Trade vs. Asseco Business Solutions | Igoria Trade vs. Detalion Games SA | Igoria Trade 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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