Correlation Between Citicore Energy and Filinvest Development

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Can any of the company-specific risk be diversified away by investing in both Citicore Energy and Filinvest Development 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 Citicore Energy and Filinvest Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citicore Energy REIT and Filinvest Development Coproration, you can compare the effects of market volatilities on Citicore Energy and Filinvest Development 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 Citicore Energy with a short position of Filinvest Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citicore Energy and Filinvest Development.

Diversification Opportunities for Citicore Energy and Filinvest Development

-0.39
  Correlation Coefficient

Very good diversification

The 3 months correlation between Citicore and Filinvest is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citicore Energy REIT and Filinvest Development Coprorat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filinvest Development and Citicore Energy 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 Citicore Energy REIT are associated (or correlated) with Filinvest Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filinvest Development has no effect on the direction of Citicore Energy i.e., Citicore Energy and Filinvest Development go up and down completely randomly.

Pair Corralation between Citicore Energy and Filinvest Development

Assuming the 90 days trading horizon Citicore Energy REIT is expected to generate 0.31 times more return on investment than Filinvest Development. However, Citicore Energy REIT is 3.25 times less risky than Filinvest Development. It trades about 0.12 of its potential returns per unit of risk. Filinvest Development Coproration is currently generating about 0.0 per unit of risk. If you would invest  212.00  in Citicore Energy REIT on November 9, 2024 and sell it today you would earn a total of  108.00  from holding Citicore Energy REIT or generate 50.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy78.41%
ValuesDaily Returns

Citicore Energy REIT  vs.  Filinvest Development Coprorat

 Performance 
       Timeline  
Citicore Energy REIT 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Citicore Energy REIT are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical and fundamental indicators, Citicore Energy may actually be approaching a critical reversion point that can send shares even higher in March 2025.
Filinvest Development 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Filinvest Development Coproration has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Citicore Energy and Filinvest Development Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Citicore Energy and Filinvest Development

The main advantage of trading using opposite Citicore Energy and Filinvest Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citicore Energy position performs unexpectedly, Filinvest Development 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 Filinvest Development will offset losses from the drop in Filinvest Development's long position.
The idea behind Citicore Energy REIT and Filinvest Development Coproration pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Transaction History module to view history of all your transactions and understand their impact on performance.

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