Correlation Between GreenX Metals and CFI Holding
Can any of the company-specific risk be diversified away by investing in both GreenX Metals 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 GreenX Metals and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and CFI Holding SA, you can compare the effects of market volatilities on GreenX Metals 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 GreenX Metals with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and CFI Holding.
Diversification Opportunities for GreenX Metals and CFI Holding
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GreenX and CFI is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals 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 GreenX Metals 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 GreenX Metals 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 GreenX Metals i.e., GreenX Metals and CFI Holding go up and down completely randomly.
Pair Corralation between GreenX Metals and CFI Holding
Assuming the 90 days trading horizon GreenX Metals is expected to generate 1.02 times more return on investment than CFI Holding. However, GreenX Metals is 1.02 times more volatile than CFI Holding SA. It trades about -0.01 of its potential returns per unit of risk. CFI Holding SA is currently generating about -0.03 per unit of risk. If you would invest 188.00 in GreenX Metals on August 29, 2024 and sell it today you would lose (18.00) from holding GreenX Metals or give up 9.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. CFI Holding SA
Performance |
| Timeline |
| GreenX Metals |
| CFI Holding SA |
GreenX Metals and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and CFI Holding
The main advantage of trading using opposite GreenX Metals and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals 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.| GreenX Metals vs. Jastrzebska Spotka Weglowa | GreenX Metals vs. Asseco Business Solutions | GreenX Metals vs. Detalion Games SA | GreenX Metals vs. CFI Holding 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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