Correlation Between GREENX METALS and CI GAMES
Can any of the company-specific risk be diversified away by investing in both GREENX METALS 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 GREENX METALS and CI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and CI GAMES SA, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and CI GAMES.
Diversification Opportunities for GREENX METALS and CI GAMES
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GREENX and CI7 is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD 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 GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and CI GAMES go up and down completely randomly.
Pair Corralation between GREENX METALS and CI GAMES
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the CI GAMES. In addition to that, GREENX METALS is 1.48 times more volatile than CI GAMES SA. It trades about -0.06 of its total potential returns per unit of risk. CI GAMES SA is currently generating about -0.03 per unit of volatility. If you would invest 33.00 in CI GAMES SA on September 12, 2024 and sell it today you would lose (1.00) from holding CI GAMES SA or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. CI GAMES SA
Performance |
| Timeline |
| GREENX METALS LTD |
| CI GAMES SA |
GREENX METALS and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and CI GAMES
The main advantage of trading using opposite GREENX METALS and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. SIVERS SEMICONDUCTORS AB | GREENX METALS vs. Norsk Hydro ASA | GREENX METALS vs. Reliance Steel Aluminum |
| CI GAMES vs. Haverty Furniture Companies | CI GAMES vs. ETFS Coffee ETC | CI GAMES vs. VARIOUS EATERIES LS | CI GAMES vs. North American Construction |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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