Correlation Between CD PROJEKT and E Shopping
Can any of the company-specific risk be diversified away by investing in both CD PROJEKT and E Shopping 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 CD PROJEKT and E Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CD PROJEKT SA and E shopping Group SA, you can compare the effects of market volatilities on CD PROJEKT and E Shopping 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 CD PROJEKT with a short position of E Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of CD PROJEKT and E Shopping.
Diversification Opportunities for CD PROJEKT and E Shopping
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CDR and ESG is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding CD PROJEKT SA and E shopping Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E shopping Group and CD PROJEKT 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 CD PROJEKT SA are associated (or correlated) with E Shopping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E shopping Group has no effect on the direction of CD PROJEKT i.e., CD PROJEKT and E Shopping go up and down completely randomly.
Pair Corralation between CD PROJEKT and E Shopping
Assuming the 90 days trading horizon CD PROJEKT SA is expected to generate 0.23 times more return on investment than E Shopping. However, CD PROJEKT SA is 4.29 times less risky than E Shopping. It trades about 0.14 of its potential returns per unit of risk. E shopping Group SA is currently generating about 0.0 per unit of risk. If you would invest 10,082 in CD PROJEKT SA on October 18, 2024 and sell it today you would earn a total of 9,373 from holding CD PROJEKT SA or generate 92.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.31% |
| Values | Daily Returns |
CD PROJEKT SA vs. E shopping Group SA
Performance |
| Timeline |
| CD PROJEKT SA |
| E shopping Group |
CD PROJEKT and E Shopping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CD PROJEKT and E Shopping
The main advantage of trading using opposite CD PROJEKT and E Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CD PROJEKT position performs unexpectedly, E Shopping 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 E Shopping will offset losses from the drop in E Shopping's long position.| CD PROJEKT vs. Kool2play SA | CD PROJEKT vs. Carlson Investments SA | CD PROJEKT vs. BNP Paribas Bank | CD PROJEKT vs. Santander Bank Polska |
| E Shopping vs. MW Trade SA | E Shopping vs. M Food SA | E Shopping vs. Play2Chill SA | E Shopping vs. PLAYWAY 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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