Correlation Between CPI Computer and VIDAVO SA
Can any of the company-specific risk be diversified away by investing in both CPI Computer and VIDAVO 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 CPI Computer and VIDAVO SA 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 VIDAVO SA, you can compare the effects of market volatilities on CPI Computer and VIDAVO 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 CPI Computer with a short position of VIDAVO SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPI Computer and VIDAVO SA.
Diversification Opportunities for CPI Computer and VIDAVO SA
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CPI and VIDAVO is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding CPI Computer Peripherals and VIDAVO SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIDAVO 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 VIDAVO SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIDAVO SA has no effect on the direction of CPI Computer i.e., CPI Computer and VIDAVO SA go up and down completely randomly.
Pair Corralation between CPI Computer and VIDAVO SA
Assuming the 90 days trading horizon CPI Computer Peripherals is expected to under-perform the VIDAVO SA. But the stock apears to be less risky and, when comparing its historical volatility, CPI Computer Peripherals is 1.03 times less risky than VIDAVO SA. The stock trades about -0.01 of its potential returns per unit of risk. The VIDAVO SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 270.00 in VIDAVO SA on August 31, 2024 and sell it today you would earn a total of 12.00 from holding VIDAVO SA or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.66% |
| Values | Daily Returns |
CPI Computer Peripherals vs. VIDAVO SA
Performance |
| Timeline |
| CPI Computer Peripherals |
| VIDAVO SA |
CPI Computer and VIDAVO SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPI Computer and VIDAVO SA
The main advantage of trading using opposite CPI Computer and VIDAVO SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPI Computer position performs unexpectedly, VIDAVO 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 VIDAVO SA will offset losses from the drop in VIDAVO SA's long position.| CPI Computer vs. Hellenic Telecommunications Organization | CPI Computer vs. General Commercial Industrial | CPI Computer vs. Bank of Greece | CPI Computer vs. Karelia Tobacco |
| VIDAVO SA vs. CPI Computer Peripherals | VIDAVO SA vs. Aegean Airlines SA | VIDAVO SA vs. Marfin Investment Group | VIDAVO SA vs. Daios Plastics 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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