Correlation Between MCI Management and CFI Holding
Can any of the company-specific risk be diversified away by investing in both MCI Management 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 MCI Management and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCI Management SA and CFI Holding SA, you can compare the effects of market volatilities on MCI Management 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 MCI Management with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCI Management and CFI Holding.
Diversification Opportunities for MCI Management and CFI Holding
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between MCI and CFI is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding MCI Management 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 MCI Management 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 MCI Management 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 MCI Management i.e., MCI Management and CFI Holding go up and down completely randomly.
Pair Corralation between MCI Management and CFI Holding
Assuming the 90 days trading horizon MCI Management SA is expected to generate 0.45 times more return on investment than CFI Holding. However, MCI Management SA is 2.22 times less risky than CFI Holding. It trades about 0.02 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 2,310 in MCI Management SA on September 2, 2024 and sell it today you would earn a total of 250.00 from holding MCI Management SA or generate 10.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCI Management SA vs. CFI Holding SA
Performance |
| Timeline |
| MCI Management SA |
| CFI Holding SA |
MCI Management and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCI Management and CFI Holding
The main advantage of trading using opposite MCI Management and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCI Management 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.| MCI Management vs. Altustfi | MCI Management vs. Alta SA | MCI Management vs. Echo Investment SA | MCI Management vs. Esotiq Henderson SA |
| CFI Holding vs. CI Games SA | CFI Holding vs. SOFTWARE MANSION SPOLKA | CFI Holding vs. BNP Paribas Bank | CFI Holding vs. Varsav Game Studios |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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