Correlation Between Esotiq Henderson and CFI Holding
Can any of the company-specific risk be diversified away by investing in both Esotiq Henderson and CFI Holding 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 Esotiq Henderson and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esotiq Henderson SA and CFI Holding SA, you can compare the effects of market volatilities on Esotiq Henderson and CFI Holding 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 Esotiq Henderson with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esotiq Henderson and CFI Holding.
Diversification Opportunities for Esotiq Henderson and CFI Holding
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Esotiq and CFI is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Esotiq Henderson SA and CFI Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CFI Holding SA and Esotiq Henderson 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 Esotiq Henderson SA are associated (or correlated) with CFI Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CFI Holding SA has no effect on the direction of Esotiq Henderson i.e., Esotiq Henderson and CFI Holding go up and down completely randomly.
Pair Corralation between Esotiq Henderson and CFI Holding
Assuming the 90 days trading horizon Esotiq Henderson SA is expected to generate 0.14 times more return on investment than CFI Holding. However, Esotiq Henderson SA is 7.21 times less risky than CFI Holding. It trades about 0.0 of its potential returns per unit of risk. CFI Holding SA is currently generating about -0.04 per unit of risk. If you would invest 4,600 in Esotiq Henderson SA on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Esotiq Henderson SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esotiq Henderson SA vs. CFI Holding SA
Performance |
| Timeline |
| Esotiq Henderson |
| CFI Holding SA |
Esotiq Henderson and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esotiq Henderson and CFI Holding
The main advantage of trading using opposite Esotiq Henderson and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esotiq Henderson position performs unexpectedly, CFI Holding 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 CFI Holding will offset losses from the drop in CFI Holding's long position.| Esotiq Henderson vs. Ultimate Games SA | Esotiq Henderson vs. BNP Paribas Bank | Esotiq Henderson vs. LSI Software SA | Esotiq Henderson vs. Alior Bank SA |
| CFI Holding vs. mBank SA | CFI Holding vs. Tower Investments SA | CFI Holding vs. MCI Management SA | CFI Holding vs. Echo Investment 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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