Correlation Between CPI Computer and Proodeftiki
Can any of the company-specific risk be diversified away by investing in both CPI Computer and Proodeftiki 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 CPI Computer and Proodeftiki into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPI Computer Peripherals and Proodeftiki SA, you can compare the effects of market volatilities on CPI Computer and Proodeftiki 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 CPI Computer with a short position of Proodeftiki. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPI Computer and Proodeftiki.
Diversification Opportunities for CPI Computer and Proodeftiki
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CPI and Proodeftiki is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding CPI Computer Peripherals and Proodeftiki SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proodeftiki SA and CPI Computer 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 CPI Computer Peripherals are associated (or correlated) with Proodeftiki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proodeftiki SA has no effect on the direction of CPI Computer i.e., CPI Computer and Proodeftiki go up and down completely randomly.
Pair Corralation between CPI Computer and Proodeftiki
Assuming the 90 days trading horizon CPI Computer Peripherals is expected to under-perform the Proodeftiki. But the stock apears to be less risky and, when comparing its historical volatility, CPI Computer Peripherals is 1.32 times less risky than Proodeftiki. The stock trades about -0.01 of its potential returns per unit of risk. The Proodeftiki SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Proodeftiki SA on September 14, 2024 and sell it today you would lose (7.00) from holding Proodeftiki SA or give up 19.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.78% |
| Values | Daily Returns |
CPI Computer Peripherals vs. Proodeftiki SA
Performance |
| Timeline |
| CPI Computer Peripherals |
| Proodeftiki SA |
CPI Computer and Proodeftiki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPI Computer and Proodeftiki
The main advantage of trading using opposite CPI Computer and Proodeftiki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPI Computer position performs unexpectedly, Proodeftiki 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 Proodeftiki will offset losses from the drop in Proodeftiki's long position.| CPI Computer vs. Eurobank Ergasias Services | CPI Computer vs. Intracom Constructions Societe | CPI Computer vs. Interlife General Insurance | CPI Computer vs. Hellenic Telecommunications Organization |
| Proodeftiki vs. Interlife General Insurance | Proodeftiki vs. Intertech SA Inter | Proodeftiki vs. Sidma SA Steel | Proodeftiki vs. General Commercial Industrial |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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