Correlation Between Enter Air and CFI Holding
Can any of the company-specific risk be diversified away by investing in both Enter Air 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 Enter Air and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enter Air SA and CFI Holding SA, you can compare the effects of market volatilities on Enter Air 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 Enter Air with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enter Air and CFI Holding.
Diversification Opportunities for Enter Air and CFI Holding
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enter and CFI is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Enter Air 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 Enter Air 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 Enter Air 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 Enter Air i.e., Enter Air and CFI Holding go up and down completely randomly.
Pair Corralation between Enter Air and CFI Holding
Assuming the 90 days trading horizon Enter Air SA is expected to generate 0.26 times more return on investment than CFI Holding. However, Enter Air SA is 3.82 times less risky than CFI Holding. It trades about -0.08 of its potential returns per unit of risk. CFI Holding SA is currently generating about -0.06 per unit of risk. If you would invest 6,020 in Enter Air SA on September 13, 2024 and sell it today you would lose (240.00) from holding Enter Air SA or give up 3.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enter Air SA vs. CFI Holding SA
Performance |
| Timeline |
| Enter Air SA |
| CFI Holding SA |
Enter Air and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enter Air and CFI Holding
The main advantage of trading using opposite Enter Air and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enter Air 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.| Enter Air vs. Banco Santander SA | Enter Air vs. UniCredit SpA | Enter Air vs. CEZ as | Enter Air vs. Polski Koncern Naftowy |
| CFI Holding vs. Echo Investment SA | CFI Holding vs. Centrum Finansowe Banku | CFI Holding vs. Gaming Factory SA | CFI Holding vs. Detalion Games 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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