Correlation Between CIM FINANCIAL and AGAPE GLOBAL
Can any of the company-specific risk be diversified away by investing in both CIM FINANCIAL and AGAPE GLOBAL 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 AGAPE GLOBAL 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 AGAPE GLOBAL INVESTMENTS, you can compare the effects of market volatilities on CIM FINANCIAL and AGAPE GLOBAL 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 AGAPE GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIM FINANCIAL and AGAPE GLOBAL.
Diversification Opportunities for CIM FINANCIAL and AGAPE GLOBAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CIM and AGAPE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CIM FINANCIAL SERVICES and AGAPE GLOBAL INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGAPE GLOBAL INVESTMENTS 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 AGAPE GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGAPE GLOBAL INVESTMENTS has no effect on the direction of CIM FINANCIAL i.e., CIM FINANCIAL and AGAPE GLOBAL go up and down completely randomly.
Pair Corralation between CIM FINANCIAL and AGAPE GLOBAL
If you would invest 135.00 in AGAPE GLOBAL INVESTMENTS on September 1, 2024 and sell it today you would earn a total of 0.00 from holding AGAPE GLOBAL INVESTMENTS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIM FINANCIAL SERVICES vs. AGAPE GLOBAL INVESTMENTS
Performance |
| Timeline |
| CIM FINANCIAL SERVICES |
| AGAPE GLOBAL INVESTMENTS |
CIM FINANCIAL and AGAPE GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIM FINANCIAL and AGAPE GLOBAL
The main advantage of trading using opposite CIM FINANCIAL and AGAPE GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIM FINANCIAL position performs unexpectedly, AGAPE GLOBAL 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 AGAPE GLOBAL will offset losses from the drop in AGAPE GLOBAL's long position.| CIM FINANCIAL vs. FINCORP INVESTMENT LTD | CIM FINANCIAL vs. MCB GROUP LTD | CIM FINANCIAL vs. CAUDAN DEVELOPMENT LTD | CIM FINANCIAL vs. SUN LIMITED |
| AGAPE GLOBAL vs. FINCORP INVESTMENT LTD | AGAPE GLOBAL vs. MCB GROUP LTD | AGAPE GLOBAL vs. CAUDAN DEVELOPMENT LTD | AGAPE GLOBAL vs. SUN LIMITED |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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