Correlation Between Igoria Trade and CFI Holding
Can any of the company-specific risk be diversified away by investing in both Igoria Trade 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 Igoria Trade and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Igoria Trade SA and CFI Holding SA, you can compare the effects of market volatilities on Igoria Trade 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 Igoria Trade with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Igoria Trade and CFI Holding.
Diversification Opportunities for Igoria Trade and CFI Holding
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Igoria and CFI is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Igoria Trade 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 Igoria Trade 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 Igoria Trade 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 Igoria Trade i.e., Igoria Trade and CFI Holding go up and down completely randomly.
Pair Corralation between Igoria Trade and CFI Holding
Assuming the 90 days trading horizon Igoria Trade SA is expected to generate 0.67 times more return on investment than CFI Holding. However, Igoria Trade SA is 1.49 times less risky than CFI Holding. It trades about -0.01 of its potential returns per unit of risk. CFI Holding SA is currently generating about -0.06 per unit of risk. If you would invest 28.00 in Igoria Trade SA on August 30, 2024 and sell it today you would lose (1.00) from holding Igoria Trade SA or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Igoria Trade SA vs. CFI Holding SA
Performance |
| Timeline |
| Igoria Trade SA |
| CFI Holding SA |
Igoria Trade and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Igoria Trade and CFI Holding
The main advantage of trading using opposite Igoria Trade and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Igoria Trade 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.| Igoria Trade vs. NGG | Igoria Trade vs. Asseco Business Solutions | Igoria Trade vs. Detalion Games SA | Igoria Trade vs. CFI Holding SA |
| CFI Holding vs. mBank SA | CFI Holding vs. Tower Investments SA | CFI Holding vs. MCI Management SA | CFI Holding vs. Echo Investment 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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