Correlation Between NATIONAL INVESTMENT and CIM FINANCIAL
Can any of the company-specific risk be diversified away by investing in both NATIONAL INVESTMENT and CIM FINANCIAL 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 NATIONAL INVESTMENT and CIM FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NATIONAL INVESTMENT TRUST and CIM FINANCIAL SERVICES, you can compare the effects of market volatilities on NATIONAL INVESTMENT and CIM FINANCIAL 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 NATIONAL INVESTMENT with a short position of CIM FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of NATIONAL INVESTMENT and CIM FINANCIAL.
Diversification Opportunities for NATIONAL INVESTMENT and CIM FINANCIAL
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between NATIONAL and CIM is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding NATIONAL INVESTMENT TRUST and CIM FINANCIAL SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIM FINANCIAL SERVICES and NATIONAL INVESTMENT 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 NATIONAL INVESTMENT TRUST are associated (or correlated) with CIM FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIM FINANCIAL SERVICES has no effect on the direction of NATIONAL INVESTMENT i.e., NATIONAL INVESTMENT and CIM FINANCIAL go up and down completely randomly.
Pair Corralation between NATIONAL INVESTMENT and CIM FINANCIAL
Assuming the 90 days trading horizon NATIONAL INVESTMENT TRUST is expected to under-perform the CIM FINANCIAL. But the stock apears to be less risky and, when comparing its historical volatility, NATIONAL INVESTMENT TRUST is 1.2 times less risky than CIM FINANCIAL. The stock trades about -0.35 of its potential returns per unit of risk. The CIM FINANCIAL SERVICES is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,540 in CIM FINANCIAL SERVICES on January 17, 2025 and sell it today you would lose (15.00) from holding CIM FINANCIAL SERVICES or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NATIONAL INVESTMENT TRUST vs. CIM FINANCIAL SERVICES
Performance |
| Timeline |
| NATIONAL INVESTMENT TRUST |
| CIM FINANCIAL SERVICES |
NATIONAL INVESTMENT and CIM FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NATIONAL INVESTMENT and CIM FINANCIAL
The main advantage of trading using opposite NATIONAL INVESTMENT and CIM FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NATIONAL INVESTMENT position performs unexpectedly, CIM FINANCIAL 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 CIM FINANCIAL will offset losses from the drop in CIM FINANCIAL's long position.| NATIONAL INVESTMENT vs. FINCORP INVESTMENT LTD | NATIONAL INVESTMENT vs. PLASTIC INDUSTRY LTD | NATIONAL INVESTMENT vs. QUALITY BEVERAGES LTD | NATIONAL INVESTMENT vs. PHOENIX INVESTMENT PANY |
| CIM FINANCIAL vs. AFRICA CLEAN ENERGY | CIM FINANCIAL vs. LOTTOTECH LTD | CIM FINANCIAL vs. NATIONAL INVESTMENT TRUST | CIM FINANCIAL vs. UNITED INVESTMENTS LTD |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |