Correlation Between CFI Holding and Labo Print
Can any of the company-specific risk be diversified away by investing in both CFI Holding and Labo Print 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 Labo Print 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 Labo Print SA, you can compare the effects of market volatilities on CFI Holding and Labo Print 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 Labo Print. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and Labo Print.
Diversification Opportunities for CFI Holding and Labo Print
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CFI and Labo is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and Labo Print SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Labo Print 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 Labo Print. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Labo Print SA has no effect on the direction of CFI Holding i.e., CFI Holding and Labo Print go up and down completely randomly.
Pair Corralation between CFI Holding and Labo Print
Assuming the 90 days trading horizon CFI Holding SA is expected to generate 2.09 times more return on investment than Labo Print. However, CFI Holding is 2.09 times more volatile than Labo Print SA. It trades about 0.0 of its potential returns per unit of risk. Labo Print SA is currently generating about 0.0 per unit of risk. If you would invest 25.00 in CFI Holding SA on August 31, 2024 and sell it today you would lose (7.00) from holding CFI Holding SA or give up 28.0% 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. Labo Print SA
Performance |
| Timeline |
| CFI Holding SA |
| Labo Print SA |
CFI Holding and Labo Print Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and Labo Print
The main advantage of trading using opposite CFI Holding and Labo Print positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, Labo Print 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 Labo Print will offset losses from the drop in Labo Print's long position.| CFI Holding vs. Intersport Polska SA | CFI Holding vs. Pyramid Games SA | CFI Holding vs. Live Motion Games | CFI Holding vs. SOFTWARE MANSION SPOLKA |
| Labo Print vs. Esotiq Henderson SA | Labo Print vs. Echo Investment SA | Labo Print vs. Asseco South Eastern | Labo Print 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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