Correlation Between VIDAVO SA and CPI Computer
Can any of the company-specific risk be diversified away by investing in both VIDAVO SA and CPI Computer 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 VIDAVO SA and CPI Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIDAVO SA and CPI Computer Peripherals, you can compare the effects of market volatilities on VIDAVO SA and CPI Computer 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 VIDAVO SA with a short position of CPI Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIDAVO SA and CPI Computer.
Diversification Opportunities for VIDAVO SA and CPI Computer
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between VIDAVO and CPI is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding VIDAVO SA and CPI Computer Peripherals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPI Computer Peripherals and VIDAVO SA 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 VIDAVO SA are associated (or correlated) with CPI Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPI Computer Peripherals has no effect on the direction of VIDAVO SA i.e., VIDAVO SA and CPI Computer go up and down completely randomly.
Pair Corralation between VIDAVO SA and CPI Computer
Assuming the 90 days trading horizon VIDAVO SA is expected to generate 1.03 times more return on investment than CPI Computer. However, VIDAVO SA is 1.03 times more volatile than CPI Computer Peripherals. It trades about 0.01 of its potential returns per unit of risk. CPI Computer Peripherals is currently generating about -0.01 per unit of risk. If you would invest 290.00 in VIDAVO SA on August 31, 2024 and sell it today you would lose (8.00) from holding VIDAVO SA or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.78% |
| Values | Daily Returns |
VIDAVO SA vs. CPI Computer Peripherals
Performance |
| Timeline |
| VIDAVO SA |
| CPI Computer Peripherals |
VIDAVO SA and CPI Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIDAVO SA and CPI Computer
The main advantage of trading using opposite VIDAVO SA and CPI Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIDAVO SA position performs unexpectedly, CPI Computer 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 CPI Computer will offset losses from the drop in CPI Computer's long position.| VIDAVO SA vs. CPI Computer Peripherals | VIDAVO SA vs. Aegean Airlines SA | VIDAVO SA vs. Marfin Investment Group | VIDAVO SA vs. Daios Plastics SA |
| CPI Computer vs. Hellenic Telecommunications Organization | CPI Computer vs. General Commercial Industrial | CPI Computer vs. Bank of Greece | CPI Computer vs. Karelia Tobacco |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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