Correlation Between CFI Holding and Izolacja Jarocin
Can any of the company-specific risk be diversified away by investing in both CFI Holding and Izolacja Jarocin 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 Izolacja Jarocin 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 Izolacja Jarocin SA, you can compare the effects of market volatilities on CFI Holding and Izolacja Jarocin 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 Izolacja Jarocin. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and Izolacja Jarocin.
Diversification Opportunities for CFI Holding and Izolacja Jarocin
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CFI and Izolacja is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and Izolacja Jarocin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Izolacja Jarocin 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 Izolacja Jarocin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Izolacja Jarocin has no effect on the direction of CFI Holding i.e., CFI Holding and Izolacja Jarocin go up and down completely randomly.
Pair Corralation between CFI Holding and Izolacja Jarocin
Assuming the 90 days trading horizon CFI Holding SA is expected to under-perform the Izolacja Jarocin. In addition to that, CFI Holding is 2.44 times more volatile than Izolacja Jarocin SA. It trades about -0.04 of its total potential returns per unit of risk. Izolacja Jarocin SA is currently generating about 0.01 per unit of volatility. If you would invest 330.00 in Izolacja Jarocin SA on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Izolacja Jarocin SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CFI Holding SA vs. Izolacja Jarocin SA
Performance |
| Timeline |
| CFI Holding SA |
| Izolacja Jarocin |
CFI Holding and Izolacja Jarocin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and Izolacja Jarocin
The main advantage of trading using opposite CFI Holding and Izolacja Jarocin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, Izolacja Jarocin 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 Izolacja Jarocin will offset losses from the drop in Izolacja Jarocin'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 |
| Izolacja Jarocin vs. LSI Software SA | Izolacja Jarocin vs. Skyline Investment SA | Izolacja Jarocin vs. SOFTWARE MANSION SPOLKA | Izolacja Jarocin vs. Tower Investments 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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