Correlation Between ECC Games and CFI Holding
Can any of the company-specific risk be diversified away by investing in both ECC Games 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 ECC Games and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECC Games SA and CFI Holding SA, you can compare the effects of market volatilities on ECC Games 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 ECC Games with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECC Games and CFI Holding.
Diversification Opportunities for ECC Games and CFI Holding
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ECC and CFI is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding ECC Games 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 ECC Games 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 ECC Games 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 ECC Games i.e., ECC Games and CFI Holding go up and down completely randomly.
Pair Corralation between ECC Games and CFI Holding
Assuming the 90 days trading horizon ECC Games SA is expected to under-perform the CFI Holding. In addition to that, ECC Games is 1.22 times more volatile than CFI Holding SA. It trades about -0.08 of its total potential returns per unit of risk. CFI Holding SA is currently generating about -0.08 per unit of volatility. If you would invest 20.00 in CFI Holding SA on September 2, 2024 and sell it today you would lose (3.00) from holding CFI Holding SA or give up 15.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.0% |
| Values | Daily Returns |
ECC Games SA vs. CFI Holding SA
Performance |
| Timeline |
| ECC Games SA |
| CFI Holding SA |
ECC Games and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECC Games and CFI Holding
The main advantage of trading using opposite ECC Games and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECC Games 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.| ECC Games vs. Inter Cars SA | ECC Games vs. UniCredit SpA | ECC Games vs. ING Bank lski | ECC Games vs. Cloud Technologies SA |
| CFI Holding vs. CI Games SA | CFI Holding vs. SOFTWARE MANSION SPOLKA | CFI Holding vs. BNP Paribas Bank | CFI Holding vs. Varsav Game Studios |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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