Correlation Between Creativeforge Games and PCF Group
Can any of the company-specific risk be diversified away by investing in both Creativeforge Games and PCF Group 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 PCF Group 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 PCF Group SA, you can compare the effects of market volatilities on Creativeforge Games and PCF Group 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 PCF Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creativeforge Games and PCF Group.
Diversification Opportunities for Creativeforge Games and PCF Group
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Creativeforge and PCF is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Creativeforge Games SA and PCF Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PCF Group SA 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 PCF Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PCF Group SA has no effect on the direction of Creativeforge Games i.e., Creativeforge Games and PCF Group go up and down completely randomly.
Pair Corralation between Creativeforge Games and PCF Group
Assuming the 90 days trading horizon Creativeforge Games is expected to generate 7.77 times less return on investment than PCF Group. But when comparing it to its historical volatility, Creativeforge Games SA is 1.58 times less risky than PCF Group. It trades about 0.04 of its potential returns per unit of risk. PCF Group SA is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 774.00 in PCF Group SA on December 2, 2024 and sell it today you would earn a total of 126.00 from holding PCF Group SA or generate 16.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Creativeforge Games SA vs. PCF Group SA
Performance |
| Timeline |
| Creativeforge Games |
| PCF Group SA |
Creativeforge Games and PCF Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creativeforge Games and PCF Group
The main advantage of trading using opposite Creativeforge Games and PCF Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creativeforge Games position performs unexpectedly, PCF Group 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 PCF Group will offset losses from the drop in PCF Group's long position.| Creativeforge Games vs. Quantum Software SA | ||
| Creativeforge Games vs. Play2Chill SA | ||
| Creativeforge Games vs. Creotech Instruments SA | ||
| Creativeforge Games vs. LSI Software SA |
| PCF Group vs. True Games Syndicate | ||
| PCF Group vs. Inter Cars SA | ||
| PCF Group vs. Vivid Games SA | ||
| PCF Group vs. Echo Investment 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |