Correlation Between Impulse Fitness and Cibox Interctive
Can any of the company-specific risk be diversified away by investing in both Impulse Fitness and Cibox Interctive 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 Impulse Fitness and Cibox Interctive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impulse Fitness Solutions and Cibox Interctive SA, you can compare the effects of market volatilities on Impulse Fitness and Cibox Interctive 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 Impulse Fitness with a short position of Cibox Interctive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impulse Fitness and Cibox Interctive.
Diversification Opportunities for Impulse Fitness and Cibox Interctive
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Impulse and Cibox is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Impulse Fitness Solutions and Cibox Interctive SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibox Interctive and Impulse Fitness 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 Impulse Fitness Solutions are associated (or correlated) with Cibox Interctive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibox Interctive has no effect on the direction of Impulse Fitness i.e., Impulse Fitness and Cibox Interctive go up and down completely randomly.
Pair Corralation between Impulse Fitness and Cibox Interctive
Assuming the 90 days trading horizon Impulse Fitness Solutions is expected to generate 0.37 times more return on investment than Cibox Interctive. However, Impulse Fitness Solutions is 2.71 times less risky than Cibox Interctive. It trades about -0.21 of its potential returns per unit of risk. Cibox Interctive SA is currently generating about -0.15 per unit of risk. If you would invest 795.00 in Impulse Fitness Solutions on September 14, 2024 and sell it today you would lose (95.00) from holding Impulse Fitness Solutions or give up 11.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impulse Fitness Solutions vs. Cibox Interctive SA
Performance |
| Timeline |
| Impulse Fitness Solutions |
| Cibox Interctive |
Impulse Fitness and Cibox Interctive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impulse Fitness and Cibox Interctive
The main advantage of trading using opposite Impulse Fitness and Cibox Interctive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impulse Fitness position performs unexpectedly, Cibox Interctive 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 Cibox Interctive will offset losses from the drop in Cibox Interctive's long position.| Impulse Fitness vs. Trigano SA | Impulse Fitness vs. Bnteau SA | Impulse Fitness vs. SA Catana Group | Impulse Fitness vs. Fountaine Pajo |
| Cibox Interctive vs. Hitechpros | Cibox Interctive vs. Metalliance SA | Cibox Interctive vs. Jacquet Metal Service | Cibox Interctive vs. Impulse Fitness Solutions |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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