Correlation Between CPI Card and Finance Of
Can any of the company-specific risk be diversified away by investing in both CPI Card and Finance Of 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 CPI Card and Finance Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPI Card Group and Finance of America, you can compare the effects of market volatilities on CPI Card and Finance Of 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 CPI Card with a short position of Finance Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPI Card and Finance Of.
Diversification Opportunities for CPI Card and Finance Of
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between CPI and Finance is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CPI Card Group and Finance of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finance of America and CPI Card 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 CPI Card Group are associated (or correlated) with Finance Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finance of America has no effect on the direction of CPI Card i.e., CPI Card and Finance Of go up and down completely randomly.
Pair Corralation between CPI Card and Finance Of
Given the investment horizon of 90 days CPI Card Group is expected to under-perform the Finance Of. In addition to that, CPI Card is 1.63 times more volatile than Finance of America. It trades about -0.08 of its total potential returns per unit of risk. Finance of America is currently generating about -0.11 per unit of volatility. If you would invest 2,871 in Finance of America on August 22, 2025 and sell it today you would lose (526.00) from holding Finance of America or give up 18.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CPI Card Group vs. Finance of America
Performance |
| Timeline |
| CPI Card Group |
| Finance of America |
CPI Card and Finance Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPI Card and Finance Of
The main advantage of trading using opposite CPI Card and Finance Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPI Card position performs unexpectedly, Finance Of 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 Finance Of will offset losses from the drop in Finance Of's long position.| CPI Card vs. Consumer Portfolio Services | CPI Card vs. Open Lending Corp | CPI Card vs. Security National Financial | CPI Card vs. Currenc Group Ordinary |
| Finance Of vs. Yirendai | Finance Of vs. Medallion Financial Corp | Finance Of vs. Open Lending Corp | Finance Of vs. Oportun Financial Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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