Correlation Between Noble Financials and CFI Holding
Can any of the company-specific risk be diversified away by investing in both Noble Financials 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 Noble Financials and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Noble Financials SA and CFI Holding SA, you can compare the effects of market volatilities on Noble Financials 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 Noble Financials with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Noble Financials and CFI Holding.
Diversification Opportunities for Noble Financials and CFI Holding
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Noble and CFI is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Noble Financials 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 Noble Financials 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 Noble Financials 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 Noble Financials i.e., Noble Financials and CFI Holding go up and down completely randomly.
Pair Corralation between Noble Financials and CFI Holding
Assuming the 90 days trading horizon Noble Financials SA is expected to generate 1.34 times more return on investment than CFI Holding. However, Noble Financials is 1.34 times more volatile than CFI Holding SA. It trades about 0.04 of its potential returns per unit of risk. CFI Holding SA is currently generating about 0.0 per unit of risk. If you would invest 5,900 in Noble Financials SA on August 30, 2024 and sell it today you would earn a total of 2,500 from holding Noble Financials SA or generate 42.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Noble Financials SA vs. CFI Holding SA
Performance |
| Timeline |
| Noble Financials |
| CFI Holding SA |
Noble Financials and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Noble Financials and CFI Holding
The main advantage of trading using opposite Noble Financials and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Noble Financials 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.| Noble Financials vs. Globe Trade Centre | Noble Financials vs. Asseco Business Solutions | Noble Financials vs. Detalion Games SA | Noble Financials 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |