Correlation Between Creativeforge Games and Centrum Finansowe
Can any of the company-specific risk be diversified away by investing in both Creativeforge Games and Centrum Finansowe 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 Creativeforge Games and Centrum Finansowe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creativeforge Games SA and Centrum Finansowe Banku, you can compare the effects of market volatilities on Creativeforge Games and Centrum Finansowe 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 Creativeforge Games with a short position of Centrum Finansowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creativeforge Games and Centrum Finansowe.
Diversification Opportunities for Creativeforge Games and Centrum Finansowe
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Creativeforge and Centrum is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Creativeforge Games SA and Centrum Finansowe Banku in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centrum Finansowe Banku and Creativeforge 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 Creativeforge Games SA are associated (or correlated) with Centrum Finansowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centrum Finansowe Banku has no effect on the direction of Creativeforge Games i.e., Creativeforge Games and Centrum Finansowe go up and down completely randomly.
Pair Corralation between Creativeforge Games and Centrum Finansowe
Assuming the 90 days trading horizon Creativeforge Games SA is expected to generate 2.22 times more return on investment than Centrum Finansowe. However, Creativeforge Games is 2.22 times more volatile than Centrum Finansowe Banku. It trades about 0.07 of its potential returns per unit of risk. Centrum Finansowe Banku is currently generating about 0.01 per unit of risk. If you would invest 213.00 in Creativeforge Games SA on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Creativeforge Games SA or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creativeforge Games SA vs. Centrum Finansowe Banku
Performance |
| Timeline |
| Creativeforge Games |
| Centrum Finansowe Banku |
Creativeforge Games and Centrum Finansowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creativeforge Games and Centrum Finansowe
The main advantage of trading using opposite Creativeforge Games and Centrum Finansowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creativeforge Games position performs unexpectedly, Centrum Finansowe 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 Centrum Finansowe will offset losses from the drop in Centrum Finansowe's long position.| Creativeforge Games vs. Asseco Business Solutions | Creativeforge Games vs. Detalion Games SA | Creativeforge Games vs. Asseco South Eastern | Creativeforge Games vs. Movie Games SA |
| Centrum Finansowe vs. Carlson Investments SA | Centrum Finansowe vs. Asseco Business Solutions | Centrum Finansowe vs. Detalion Games SA | Centrum Finansowe vs. Asseco South Eastern |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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