Correlation Between Cibl and Fosun International
Can any of the company-specific risk be diversified away by investing in both Cibl and Fosun International 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 Cibl and Fosun International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cibl Inc and Fosun International, you can compare the effects of market volatilities on Cibl and Fosun International 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 Cibl with a short position of Fosun International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cibl and Fosun International.
Diversification Opportunities for Cibl and Fosun International
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cibl and Fosun is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Cibl Inc and Fosun International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fosun International and Cibl 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 Cibl Inc are associated (or correlated) with Fosun International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fosun International has no effect on the direction of Cibl i.e., Cibl and Fosun International go up and down completely randomly.
Pair Corralation between Cibl and Fosun International
Given the investment horizon of 90 days Cibl Inc is expected to under-perform the Fosun International. But the pink sheet apears to be less risky and, when comparing its historical volatility, Cibl Inc is 4.55 times less risky than Fosun International. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Fosun International is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 59.00 in Fosun International on September 1, 2024 and sell it today you would lose (5.00) from holding Fosun International or give up 8.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 92.91% |
| Values | Daily Returns |
Cibl Inc vs. Fosun International
Performance |
| Timeline |
| Cibl Inc |
| Fosun International |
Cibl and Fosun International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cibl and Fosun International
The main advantage of trading using opposite Cibl and Fosun International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cibl position performs unexpectedly, Fosun International 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 Fosun International will offset losses from the drop in Fosun International's long position.| Cibl vs. Alliance Recovery | Cibl vs. Agro Capital Management | Cibl vs. Ayala | Cibl vs. Alliance Global Group |
| Fosun International vs. Global Tech Industries | Fosun International vs. NN Inc | Fosun International vs. National Health Scan | Fosun International vs. RCABS Inc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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