Correlation Between Gobarto SA and CFI Holding
Can any of the company-specific risk be diversified away by investing in both Gobarto SA 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 Gobarto SA and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gobarto SA and CFI Holding SA, you can compare the effects of market volatilities on Gobarto SA 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 Gobarto SA with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gobarto SA and CFI Holding.
Diversification Opportunities for Gobarto SA and CFI Holding
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gobarto and CFI is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gobarto 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 Gobarto SA 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 Gobarto 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 Gobarto SA i.e., Gobarto SA and CFI Holding go up and down completely randomly.
Pair Corralation between Gobarto SA and CFI Holding
Assuming the 90 days trading horizon Gobarto SA is expected to generate 0.58 times more return on investment than CFI Holding. However, Gobarto SA is 1.72 times less risky than CFI Holding. It trades about -0.09 of its potential returns per unit of risk. CFI Holding SA is currently generating about -0.1 per unit of risk. If you would invest 3,490 in Gobarto SA on August 26, 2024 and sell it today you would lose (250.00) from holding Gobarto SA or give up 7.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gobarto SA vs. CFI Holding SA
Performance |
| Timeline |
| Gobarto SA |
| CFI Holding SA |
Gobarto SA and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gobarto SA and CFI Holding
The main advantage of trading using opposite Gobarto SA and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gobarto SA 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.| Gobarto SA vs. Gremi Media SA | Gobarto SA vs. Datawalk SA | Gobarto SA vs. 3R Games SA | Gobarto SA vs. PMPG Polskie Media |
| CFI Holding vs. LSI Software SA | CFI Holding vs. Play2Chill SA | CFI Holding vs. Movie Games SA | CFI Holding vs. Noble Financials 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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