Correlation Between Baked Games and CEZ As
Can any of the company-specific risk be diversified away by investing in both Baked Games and CEZ As 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 Baked Games and CEZ As into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baked Games SA and CEZ as, you can compare the effects of market volatilities on Baked Games and CEZ As 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 Baked Games with a short position of CEZ As. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baked Games and CEZ As.
Diversification Opportunities for Baked Games and CEZ As
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baked and CEZ is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Baked Games SA and CEZ as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEZ as and Baked Games 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 Baked Games SA are associated (or correlated) with CEZ As. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEZ as has no effect on the direction of Baked Games i.e., Baked Games and CEZ As go up and down completely randomly.
Pair Corralation between Baked Games and CEZ As
Assuming the 90 days trading horizon Baked Games SA is expected to under-perform the CEZ As. In addition to that, Baked Games is 2.13 times more volatile than CEZ as. It trades about -0.07 of its total potential returns per unit of risk. CEZ as is currently generating about 0.01 per unit of volatility. If you would invest 16,329 in CEZ as on August 25, 2024 and sell it today you would earn a total of 101.00 from holding CEZ as or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.03% |
| Values | Daily Returns |
Baked Games SA vs. CEZ as
Performance |
| Timeline |
| Baked Games SA |
| CEZ as |
Baked Games and CEZ As Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baked Games and CEZ As
The main advantage of trading using opposite Baked Games and CEZ As positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baked Games position performs unexpectedly, CEZ As 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 CEZ As will offset losses from the drop in CEZ As' long position.| Baked Games vs. Banco Santander SA | Baked Games vs. UniCredit SpA | Baked Games vs. CEZ as | Baked Games vs. Polski Koncern Naftowy |
| CEZ As vs. True Games Syndicate | CEZ As vs. Logintrade SA | CEZ As vs. Gamedust SA | CEZ As vs. Baked 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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