Correlation Between DFDS AS and CI GAMES
Can any of the company-specific risk be diversified away by investing in both DFDS AS and CI GAMES 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 DFDS AS and CI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DFDS AS and CI GAMES SA, you can compare the effects of market volatilities on DFDS AS and CI GAMES 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 DFDS AS with a short position of CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of DFDS AS and CI GAMES.
Diversification Opportunities for DFDS AS and CI GAMES
Very weak diversification
The 3 months correlation between DFDS and CI7 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding DFDS AS and CI GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI GAMES SA and DFDS AS 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 DFDS AS are associated (or correlated) with CI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI GAMES SA has no effect on the direction of DFDS AS i.e., DFDS AS and CI GAMES go up and down completely randomly.
Pair Corralation between DFDS AS and CI GAMES
Assuming the 90 days horizon DFDS AS is expected to under-perform the CI GAMES. But the stock apears to be less risky and, when comparing its historical volatility, DFDS AS is 2.45 times less risky than CI GAMES. The stock trades about -0.01 of its potential returns per unit of risk. The CI GAMES SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 50.00 in CI GAMES SA on September 14, 2024 and sell it today you would lose (20.00) from holding CI GAMES SA or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DFDS AS vs. CI GAMES SA
Performance |
| Timeline |
| DFDS AS |
| CI GAMES SA |
DFDS AS and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DFDS AS and CI GAMES
The main advantage of trading using opposite DFDS AS and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DFDS AS position performs unexpectedly, CI GAMES 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 CI GAMES will offset losses from the drop in CI GAMES's long position.The idea behind DFDS AS and CI GAMES SA 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.| CI GAMES vs. NEXON Co | CI GAMES vs. Take Two Interactive Software | CI GAMES vs. Superior Plus Corp | CI GAMES vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |