Correlation Between CFI Holding and Text SA
Can any of the company-specific risk be diversified away by investing in both CFI Holding and Text SA 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 Text SA 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 Text SA, you can compare the effects of market volatilities on CFI Holding and Text SA 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 Text SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and Text SA.
Diversification Opportunities for CFI Holding and Text SA
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CFI and Text is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and Text SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Text 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 Text SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Text SA has no effect on the direction of CFI Holding i.e., CFI Holding and Text SA go up and down completely randomly.
Pair Corralation between CFI Holding and Text SA
Assuming the 90 days trading horizon CFI Holding SA is expected to generate 3.03 times more return on investment than Text SA. However, CFI Holding is 3.03 times more volatile than Text SA. It trades about -0.04 of its potential returns per unit of risk. Text SA is currently generating about -0.16 per unit of risk. If you would invest 20.00 in CFI Holding SA on August 30, 2024 and sell it today you would lose (2.00) from holding CFI Holding SA or give up 10.0% 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. Text SA
Performance |
| Timeline |
| CFI Holding SA |
| Text SA |
CFI Holding and Text SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and Text SA
The main advantage of trading using opposite CFI Holding and Text SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, Text SA 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 Text SA will offset losses from the drop in Text SA'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 |
| Text SA vs. Movie Games SA | Text SA vs. SOFTWARE MANSION SPOLKA | Text SA vs. ING Bank lski | Text SA vs. mBank 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |