Correlation Between REDSUN PROPERTIES and CIFI Holdings

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

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

Diversification Opportunities for REDSUN PROPERTIES and CIFI Holdings

0.0

Correlation Coefficient

REDSUN PROPERTIES  CIFI Holdings

Pay attention - limited upside

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

Pair Corralation between REDSUN PROPERTIES and CIFI Holdings

If you would invest (100.00) in CIFI Holdings Co on September 23, 2024 and sell it today you would earn a total of  100.00  from holding CIFI Holdings Co or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

REDSUN PROPERTIES GROUP  vs.  CIFI Holdings Co

REDSUN PROPERTIES

Risk-Adjusted Performance

0 of 100

Good

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

CIFI Holdings

Risk-Adjusted Performance

0 of 100

OK

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

Pair Trading with REDSUN PROPERTIES and CIFI Holdings

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

The idea behind REDSUN PROPERTIES GROUP and CIFI Holdings Co 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.