Correlation Between Investment Friends and CFI Holding
Can any of the company-specific risk be diversified away by investing in both Investment Friends 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 Investment Friends and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment Friends Capital and CFI Holding SA, you can compare the effects of market volatilities on Investment Friends 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 Investment Friends with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Friends and CFI Holding.
Diversification Opportunities for Investment Friends and CFI Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Investment and CFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Investment Friends Capital 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 Investment Friends 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 Investment Friends Capital 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 Investment Friends i.e., Investment Friends and CFI Holding go up and down completely randomly.
Pair Corralation between Investment Friends and CFI Holding
If you would invest 20.00 in CFI Holding SA on November 8, 2024 and sell it today you would lose (1.00) from holding CFI Holding SA or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investment Friends Capital vs. CFI Holding SA
Performance |
| Timeline |
| Investment Friends |
| CFI Holding SA |
Investment Friends and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Friends and CFI Holding
The main advantage of trading using opposite Investment Friends and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Friends 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.| Investment Friends vs. Mercator Medical SA | Investment Friends vs. SOFTWARE MANSION SPOLKA | Investment Friends vs. Immobile | Investment Friends vs. Globe Trade Centre |
| CFI Holding vs. New Tech Venture | CFI Holding vs. BNP Paribas Bank | CFI Holding vs. Alior Bank SA | CFI Holding vs. GreenX Metals |
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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