Correlation Between CFI Holding and Movie Games
Can any of the company-specific risk be diversified away by investing in both CFI Holding and Movie Games 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 Movie Games 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 Movie Games SA, you can compare the effects of market volatilities on CFI Holding and Movie Games 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 Movie Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and Movie Games.
Diversification Opportunities for CFI Holding and Movie Games
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CFI and Movie is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and Movie Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movie Games 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 Movie Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movie Games SA has no effect on the direction of CFI Holding i.e., CFI Holding and Movie Games go up and down completely randomly.
Pair Corralation between CFI Holding and Movie Games
Assuming the 90 days trading horizon CFI Holding SA is expected to generate 1.05 times more return on investment than Movie Games. However, CFI Holding is 1.05 times more volatile than Movie Games SA. It trades about 0.0 of its potential returns per unit of risk. Movie Games SA is currently generating about 0.0 per unit of risk. If you would invest 25.00 in CFI Holding SA on August 30, 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. Movie Games SA
Performance |
| Timeline |
| CFI Holding SA |
| Movie Games SA |
CFI Holding and Movie Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and Movie Games
The main advantage of trading using opposite CFI Holding and Movie Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, Movie Games 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 Movie Games will offset losses from the drop in Movie Games' 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 |
| Movie Games vs. CD PROJEKT SA | Movie Games vs. PLAYWAY SA | Movie Games vs. 11 bit studios | Movie Games vs. Ultimate 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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