Correlation Between E Xim and CFI Holding
Can any of the company-specific risk be diversified away by investing in both E Xim 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 E Xim and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Xim IT and CFI Holding SA, you can compare the effects of market volatilities on E Xim 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 E Xim with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Xim and CFI Holding.
Diversification Opportunities for E Xim and CFI Holding
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EXM and CFI is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding E Xim IT 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 E Xim 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 E Xim IT 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 E Xim i.e., E Xim and CFI Holding go up and down completely randomly.
Pair Corralation between E Xim and CFI Holding
Assuming the 90 days trading horizon E Xim IT is expected to generate 0.76 times more return on investment than CFI Holding. However, E Xim IT is 1.32 times less risky than CFI Holding. It trades about 0.25 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 12,900 in E Xim IT on August 30, 2024 and sell it today you would earn a total of 3,600 from holding E Xim IT or generate 27.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 65.85% |
| Values | Daily Returns |
E Xim IT vs. CFI Holding SA
Performance |
| Timeline |
| E Xim IT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| CFI Holding SA |
E Xim and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Xim and CFI Holding
The main advantage of trading using opposite E Xim and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Xim 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.| E Xim vs. Varsav Game Studios | E Xim vs. Gamedust SA | E Xim vs. Ultimate Games SA | E Xim vs. Inter Cars SA |
| CFI Holding vs. Tower Investments SA | CFI Holding vs. Centrum Finansowe Banku | CFI Holding vs. Alior Bank SA | CFI Holding vs. Santander Bank Polska |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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