Correlation Between Creativeforge Games and Vivid Games

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Creativeforge Games and Vivid 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 Creativeforge Games and Vivid Games 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 Vivid Games SA, you can compare the effects of market volatilities on Creativeforge Games and Vivid 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 Creativeforge Games with a short position of Vivid Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creativeforge Games and Vivid Games.

Diversification Opportunities for Creativeforge Games and Vivid Games

CreativeforgeVividDiversified AwayCreativeforgeVividDiversified Away100%
0.03
  Correlation Coefficient

Significant diversification

The 3 months correlation between Creativeforge and Vivid is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Creativeforge Games SA and Vivid Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivid Games 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 Vivid Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivid Games SA has no effect on the direction of Creativeforge Games i.e., Creativeforge Games and Vivid Games go up and down completely randomly.

Pair Corralation between Creativeforge Games and Vivid Games

Assuming the 90 days trading horizon Creativeforge Games SA is expected to under-perform the Vivid Games. But the stock apears to be less risky and, when comparing its historical volatility, Creativeforge Games SA is 1.12 times less risky than Vivid Games. The stock trades about -0.09 of its potential returns per unit of risk. The Vivid Games SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  93.00  in Vivid Games SA on December 1, 2024 and sell it today you would lose (33.00) from holding Vivid Games SA or give up 35.48% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Creativeforge Games SA  vs.  Vivid Games SA

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-505
JavaScript chart by amCharts 3.21.15CFG VVD
       Timeline  
Creativeforge Games 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Creativeforge Games SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Creativeforge Games is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFebMar1.81.922.12.22.3
Vivid Games SA 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Vivid Games SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Vivid Games is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.560.580.60.620.640.660.680.7

Creativeforge Games and Vivid Games Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.34-3.25-2.16-1.070.01.072.153.244.33 0.050.060.070.08
JavaScript chart by amCharts 3.21.15CFG VVD
       Returns  

Pair Trading with Creativeforge Games and Vivid Games

The main advantage of trading using opposite Creativeforge Games and Vivid Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creativeforge Games position performs unexpectedly, Vivid 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 Vivid Games will offset losses from the drop in Vivid Games' long position.
The idea behind Creativeforge Games SA and Vivid Games SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Other Complementary Tools

Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device