Correlation Between C I and SFS REAL

Can any of the company-specific risk be diversified away by investing in both C I and SFS REAL 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 C I and SFS REAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between C I LEASING and SFS REAL ESTATE, you can compare the effects of market volatilities on C I and SFS REAL 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 C I with a short position of SFS REAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of C I and SFS REAL.

Diversification Opportunities for C I and SFS REAL

0.0

Correlation Coefficient

C I  SFS REAL

Pay attention - limited upside

The 3 months correlation between CILEASING and SFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding C I LEASING and SFS REAL ESTATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFS REAL ESTATE and C I 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 C I LEASING are associated (or correlated) with SFS REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFS REAL ESTATE has no effect on the direction of C I i.e., C I and SFS REAL go up and down completely randomly.

Pair Corralation between C I and SFS REAL

If you would invest  360.00  in C I LEASING on October 24, 2024 and sell it today you would earn a total of  50.00  from holding C I LEASING or generate 13.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

C I LEASING  vs.  SFS REAL ESTATE

C I LEASING

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in C I LEASING are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, C I demonstrated solid returns over the last few months and may actually be approaching a breakup point.

SFS REAL ESTATE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SFS REAL ESTATE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, SFS REAL is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with C I and SFS REAL

The main advantage of trading using opposite C I and SFS REAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C I position performs unexpectedly, SFS REAL 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 SFS REAL will offset losses from the drop in SFS REAL's long position.

The idea behind C I LEASING and SFS REAL ESTATE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.