Correlation Between Citicore Energy and Filinvest Development

Can any of the company-specific risk be diversified away by investing in both Citicore Energy and Filinvest Development 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 Citicore Energy and Filinvest Development into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citicore Energy REIT and Filinvest Development Coproration, you can compare the effects of market volatilities on Citicore Energy and Filinvest Development 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 Citicore Energy with a short position of Filinvest Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citicore Energy and Filinvest Development.

Diversification Opportunities for Citicore Energy and Filinvest Development

0.73

Correlation Coefficient

Citicore Energy  Filinvest Development

Poor diversification

The 3 months correlation between Citicore and Filinvest is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citicore Energy REIT and Filinvest Development Coprorat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filinvest Development and Citicore Energy 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 Citicore Energy REIT are associated (or correlated) with Filinvest Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filinvest Development has no effect on the direction of Citicore Energy i.e., Citicore Energy and Filinvest Development go up and down completely randomly.

Pair Corralation between Citicore Energy and Filinvest Development

Assuming the 90 days trading horizon Citicore Energy is expected to generate 1.61 times less return on investment than Filinvest Development. But when comparing it to its historical volatility, Citicore Energy REIT is 3.45 times less risky than Filinvest Development. It trades about 0.27 of its potential returns per unit of risk. Filinvest Development Coproration is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  418.00  in Filinvest Development Coproration on April 20, 2025 and sell it today you would earn a total of  79.00  from holding Filinvest Development Coproration or generate 18.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	83.87%
Values	Daily Returns

Citicore Energy REIT  vs.  Filinvest Development Coprorat

Citicore Energy REIT

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citicore Energy REIT are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Citicore Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Filinvest Development

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Filinvest Development Coproration are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Filinvest Development exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citicore Energy and Filinvest Development

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

The idea behind Citicore Energy REIT and Filinvest Development Coproration 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.