Correlation Between HIGHTECH PAYMENT and CFG BANK
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By analyzing existing cross correlation between HIGHTECH PAYMENT SYSTEMS and CFG BANK, you can compare the effects of market volatilities on HIGHTECH PAYMENT and CFG BANK 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 HIGHTECH PAYMENT with a short position of CFG BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIGHTECH PAYMENT and CFG BANK.
Diversification Opportunities for HIGHTECH PAYMENT and CFG BANK
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HIGHTECH and CFG is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding HIGHTECH PAYMENT SYSTEMS and CFG BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CFG BANK and HIGHTECH PAYMENT 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 HIGHTECH PAYMENT SYSTEMS are associated (or correlated) with CFG BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CFG BANK has no effect on the direction of HIGHTECH PAYMENT i.e., HIGHTECH PAYMENT and CFG BANK go up and down completely randomly.
Pair Corralation between HIGHTECH PAYMENT and CFG BANK
Assuming the 90 days trading horizon HIGHTECH PAYMENT SYSTEMS is expected to under-perform the CFG BANK. But the stock apears to be less risky and, when comparing its historical volatility, HIGHTECH PAYMENT SYSTEMS is 1.18 times less risky than CFG BANK. The stock trades about -0.02 of its potential returns per unit of risk. The CFG BANK is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 12,095 in CFG BANK on August 26, 2024 and sell it today you would earn a total of 8,935 from holding CFG BANK or generate 73.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.21% |
| Values | Daily Returns |
HIGHTECH PAYMENT SYSTEMS vs. CFG BANK
Performance |
| Timeline |
| HIGHTECH PAYMENT SYSTEMS |
| CFG BANK |
HIGHTECH PAYMENT and CFG BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIGHTECH PAYMENT and CFG BANK
The main advantage of trading using opposite HIGHTECH PAYMENT and CFG BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIGHTECH PAYMENT position performs unexpectedly, CFG BANK 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 CFG BANK will offset losses from the drop in CFG BANK's long position.| HIGHTECH PAYMENT vs. BMCI | HIGHTECH PAYMENT vs. CFG BANK | HIGHTECH PAYMENT vs. AGMA LAHLOU TAZI | HIGHTECH PAYMENT vs. CREDIT IMMOBILIER ET |
| CFG BANK vs. BMCI | CFG BANK vs. AGMA LAHLOU TAZI | CFG BANK vs. CREDIT IMMOBILIER ET | CFG BANK vs. MAROC LEASING |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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