Correlation Between CIM FINANCIAL and CAVELL TOURISTIC
Can any of the company-specific risk be diversified away by investing in both CIM FINANCIAL and CAVELL TOURISTIC 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 CIM FINANCIAL and CAVELL TOURISTIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIM FINANCIAL SERVICES and CAVELL TOURISTIC INVESTMENTS, you can compare the effects of market volatilities on CIM FINANCIAL and CAVELL TOURISTIC 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 CIM FINANCIAL with a short position of CAVELL TOURISTIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIM FINANCIAL and CAVELL TOURISTIC.
Diversification Opportunities for CIM FINANCIAL and CAVELL TOURISTIC
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CIM and CAVELL is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding CIM FINANCIAL SERVICES and CAVELL TOURISTIC INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVELL TOURISTIC INV and CIM FINANCIAL 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 CIM FINANCIAL SERVICES are associated (or correlated) with CAVELL TOURISTIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVELL TOURISTIC INV has no effect on the direction of CIM FINANCIAL i.e., CIM FINANCIAL and CAVELL TOURISTIC go up and down completely randomly.
Pair Corralation between CIM FINANCIAL and CAVELL TOURISTIC
Assuming the 90 days trading horizon CIM FINANCIAL SERVICES is expected to generate 0.3 times more return on investment than CAVELL TOURISTIC. However, CIM FINANCIAL SERVICES is 3.38 times less risky than CAVELL TOURISTIC. It trades about -0.36 of its potential returns per unit of risk. CAVELL TOURISTIC INVESTMENTS is currently generating about -0.22 per unit of risk. If you would invest 1,345 in CIM FINANCIAL SERVICES on August 27, 2024 and sell it today you would lose (95.00) from holding CIM FINANCIAL SERVICES or give up 7.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIM FINANCIAL SERVICES vs. CAVELL TOURISTIC INVESTMENTS
Performance |
| Timeline |
| CIM FINANCIAL SERVICES |
| CAVELL TOURISTIC INV |
CIM FINANCIAL and CAVELL TOURISTIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIM FINANCIAL and CAVELL TOURISTIC
The main advantage of trading using opposite CIM FINANCIAL and CAVELL TOURISTIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIM FINANCIAL position performs unexpectedly, CAVELL TOURISTIC 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 CAVELL TOURISTIC will offset losses from the drop in CAVELL TOURISTIC's long position.| CIM FINANCIAL vs. MCB GROUP LTD | CIM FINANCIAL vs. LOTTOTECH LTD | CIM FINANCIAL vs. NEW MAURITIUS HOTELS | CIM FINANCIAL vs. MIWA SUGAR LIMITED |
| CAVELL TOURISTIC vs. PSG FINANCIAL SERVICES | CAVELL TOURISTIC vs. CONSTANCE HOTELS SERVICES | CAVELL TOURISTIC vs. MAURITIUS CHEMICAL FERTILIZER | CAVELL TOURISTIC vs. UNITED INVESTMENTS LTD |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |