Correlation Between CIFI Holdings and Pruksa Holding

Can any of the company-specific risk be diversified away by investing in both CIFI Holdings and Pruksa Holding 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 CIFI Holdings and Pruksa Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CIFI Holdings Co and Pruksa Holding Public, you can compare the effects of market volatilities on CIFI Holdings and Pruksa Holding 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 CIFI Holdings with a short position of Pruksa Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIFI Holdings and Pruksa Holding.

Diversification Opportunities for CIFI Holdings and Pruksa Holding

-0.02

Correlation Coefficient

CIFI Holdings  Pruksa Holding

Good diversification

The 3 months correlation between CIFI and Pruksa is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CIFI Holdings Co and Pruksa Holding Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pruksa Holding Public and CIFI Holdings 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 CIFI Holdings Co are associated (or correlated) with Pruksa Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pruksa Holding Public has no effect on the direction of CIFI Holdings i.e., CIFI Holdings and Pruksa Holding go up and down completely randomly.

Pair Corralation between CIFI Holdings and Pruksa Holding

Assuming the 90 days horizon CIFI Holdings Co is expected to generate 2.33 times more return on investment than Pruksa Holding. However, CIFI Holdings is 2.33 times more volatile than Pruksa Holding Public. It trades about 0.07 of its potential returns per unit of risk. Pruksa Holding Public is currently generating about -0.01 per unit of risk. If you would invest  1.95  in CIFI Holdings Co on April 23, 2025 and sell it today you would earn a total of  0.30  from holding CIFI Holdings Co or generate 15.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

CIFI Holdings Co  vs.  Pruksa Holding Public

CIFI Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CIFI Holdings Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CIFI Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pruksa Holding Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pruksa Holding Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Pruksa Holding is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CIFI Holdings and Pruksa Holding

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

The idea behind CIFI Holdings Co and Pruksa Holding Public 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.