Correlation Between CFI Holding and Monnari Trade
Can any of the company-specific risk be diversified away by investing in both CFI Holding and Monnari 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 Monnari 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 Monnari Trade SA, you can compare the effects of market volatilities on CFI Holding and Monnari 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 Monnari Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and Monnari Trade.
Diversification Opportunities for CFI Holding and Monnari Trade
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between CFI and Monnari is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and Monnari Trade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monnari 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 Monnari Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monnari Trade SA has no effect on the direction of CFI Holding i.e., CFI Holding and Monnari Trade go up and down completely randomly.
Pair Corralation between CFI Holding and Monnari Trade
Assuming the 90 days trading horizon CFI Holding SA is expected to under-perform the Monnari Trade. In addition to that, CFI Holding is 5.13 times more volatile than Monnari Trade SA. It trades about -0.04 of its total potential returns per unit of risk. Monnari Trade SA is currently generating about -0.13 per unit of volatility. If you would invest 570.00 in Monnari Trade SA on August 30, 2024 and sell it today you would lose (20.00) from holding Monnari Trade SA or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CFI Holding SA vs. Monnari Trade SA
Performance |
| Timeline |
| CFI Holding SA |
| Monnari Trade SA |
CFI Holding and Monnari Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and Monnari Trade
The main advantage of trading using opposite CFI Holding and Monnari Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, Monnari 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 Monnari Trade will offset losses from the drop in Monnari Trade's long position.| CFI Holding vs. mBank SA | CFI Holding vs. Tower Investments SA | CFI Holding vs. MCI Management SA | CFI Holding vs. Echo Investment SA |
| Monnari Trade vs. 3R Games SA | Monnari Trade vs. UF Games SA | Monnari Trade vs. Detalion Games SA | Monnari Trade vs. PMPG Polskie Media |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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