Correlation Between Strix Group and CIFI Holdings
Can any of the company-specific risk be diversified away by investing in both Strix Group and CIFI Holdings 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 Strix Group and CIFI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strix Group Plc and CIFI Holdings Co, you can compare the effects of market volatilities on Strix Group and CIFI Holdings 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 Strix Group with a short position of CIFI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strix Group and CIFI Holdings.
Diversification Opportunities for Strix Group and CIFI Holdings
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Strix and CIFI is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Strix Group Plc and CIFI Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIFI Holdings and Strix Group 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 Strix Group Plc are associated (or correlated) with CIFI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIFI Holdings has no effect on the direction of Strix Group i.e., Strix Group and CIFI Holdings go up and down completely randomly.
Pair Corralation between Strix Group and CIFI Holdings
Assuming the 90 days horizon Strix Group Plc is expected to generate 0.5 times more return on investment than CIFI Holdings. However, Strix Group Plc is 2.01 times less risky than CIFI Holdings. It trades about 0.01 of its potential returns per unit of risk. CIFI Holdings Co is currently generating about -0.2 per unit of risk. If you would invest 71.00 in Strix Group Plc on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Strix Group Plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strix Group Plc vs. CIFI Holdings Co
Performance |
| Timeline |
| Strix Group Plc |
| CIFI Holdings |
Strix Group and CIFI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strix Group and CIFI Holdings
The main advantage of trading using opposite Strix Group and CIFI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strix Group position performs unexpectedly, CIFI Holdings 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 CIFI Holdings will offset losses from the drop in CIFI Holdings' long position.| Strix Group vs. Japan Tobacco | Strix Group vs. Transport International Holdings | Strix Group vs. Taiwan Semiconductor Manufacturing | Strix Group vs. UPDATE SOFTWARE |
| CIFI Holdings vs. Superior Plus Corp | CIFI Holdings vs. NMI Holdings | CIFI Holdings vs. Origin Agritech | CIFI Holdings vs. SIVERS SEMICONDUCTORS AB |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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