Correlation Between APS Energia and CI Games
Can any of the company-specific risk be diversified away by investing in both APS Energia 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 APS Energia and CI Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APS Energia SA and CI Games SA, you can compare the effects of market volatilities on APS Energia 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 APS Energia with a short position of CI Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of APS Energia and CI Games.
Diversification Opportunities for APS Energia and CI Games
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between APS and CIG is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding APS Energia SA 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 APS Energia 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 APS Energia SA 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 APS Energia i.e., APS Energia and CI Games go up and down completely randomly.
Pair Corralation between APS Energia and CI Games
Assuming the 90 days trading horizon APS Energia SA is expected to generate 0.97 times more return on investment than CI Games. However, APS Energia SA is 1.03 times less risky than CI Games. It trades about 0.0 of its potential returns per unit of risk. CI Games SA is currently generating about -0.01 per unit of risk. If you would invest 340.00 in APS Energia SA on August 26, 2024 and sell it today you would lose (94.00) from holding APS Energia SA or give up 27.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APS Energia SA vs. CI Games SA
Performance |
| Timeline |
| APS Energia SA |
| CI Games SA |
APS Energia and CI Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APS Energia and CI Games
The main advantage of trading using opposite APS Energia and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APS Energia 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' long position.| APS Energia vs. True Games Syndicate | APS Energia vs. Carlson Investments SA | APS Energia vs. CI Games SA | APS Energia vs. Saule Technologies SA |
| CI Games vs. CD PROJEKT SA | CI Games vs. 11 bit studios | CI Games vs. Movie Games SA | CI Games vs. Ultimate Games SA |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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