Correlation Between ALLFUNDS GROUP and CDL INVESTMENT

Can any of the company-specific risk be diversified away by investing in both ALLFUNDS GROUP and CDL INVESTMENT 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 ALLFUNDS GROUP and CDL INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ALLFUNDS GROUP EO 0025 and CDL INVESTMENT, you can compare the effects of market volatilities on ALLFUNDS GROUP and CDL INVESTMENT 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 ALLFUNDS GROUP with a short position of CDL INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALLFUNDS GROUP and CDL INVESTMENT.

Diversification Opportunities for ALLFUNDS GROUP and CDL INVESTMENT

0.47

Correlation Coefficient

ALLFUNDS GROUP  CDL INVESTMENT

Very weak diversification

The 3 months correlation between ALLFUNDS and CDL is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding ALLFUNDS GROUP EO 0025 and CDL INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDL INVESTMENT and ALLFUNDS 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 ALLFUNDS GROUP EO 0025 are associated (or correlated) with CDL INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDL INVESTMENT has no effect on the direction of ALLFUNDS GROUP i.e., ALLFUNDS GROUP and CDL INVESTMENT go up and down completely randomly.

Pair Corralation between ALLFUNDS GROUP and CDL INVESTMENT

Assuming the 90 days horizon ALLFUNDS GROUP EO 0025 is expected to generate 1.02 times more return on investment than CDL INVESTMENT. However, ALLFUNDS GROUP is 1.02 times more volatile than CDL INVESTMENT. It trades about 0.04 of its potential returns per unit of risk. CDL INVESTMENT is currently generating about 0.03 per unit of risk. If you would invest  560.00  in ALLFUNDS GROUP EO 0025 on March 19, 2025 and sell it today you would earn a total of  26.00  from holding ALLFUNDS GROUP EO 0025 or generate 4.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ALLFUNDS GROUP EO 0025  vs.  CDL INVESTMENT

ALLFUNDS GROUP EO

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ALLFUNDS GROUP EO 0025 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ALLFUNDS GROUP may actually be approaching a critical reversion point that can send shares even higher in July 2025.

CDL INVESTMENT

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CDL INVESTMENT are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, CDL INVESTMENT is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ALLFUNDS GROUP and CDL INVESTMENT

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

The idea behind ALLFUNDS GROUP EO 0025 and CDL INVESTMENT 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.