Correlation Between Centrum Finansowe and Pyramid Games
Can any of the company-specific risk be diversified away by investing in both Centrum Finansowe and Pyramid 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 Centrum Finansowe and Pyramid Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centrum Finansowe Banku and Pyramid Games SA, you can compare the effects of market volatilities on Centrum Finansowe and Pyramid 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 Centrum Finansowe with a short position of Pyramid Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrum Finansowe and Pyramid Games.
Diversification Opportunities for Centrum Finansowe and Pyramid Games
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Centrum and Pyramid is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Centrum Finansowe Banku and Pyramid Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyramid Games SA and Centrum Finansowe 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 Centrum Finansowe Banku are associated (or correlated) with Pyramid Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyramid Games SA has no effect on the direction of Centrum Finansowe i.e., Centrum Finansowe and Pyramid Games go up and down completely randomly.
Pair Corralation between Centrum Finansowe and Pyramid Games
Assuming the 90 days trading horizon Centrum Finansowe Banku is expected to under-perform the Pyramid Games. But the stock apears to be less risky and, when comparing its historical volatility, Centrum Finansowe Banku is 1.13 times less risky than Pyramid Games. The stock trades about -0.04 of its potential returns per unit of risk. The Pyramid Games SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,300 in Pyramid Games SA on September 3, 2024 and sell it today you would lose (20.00) from holding Pyramid Games SA or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Centrum Finansowe Banku vs. Pyramid Games SA
Performance |
| Timeline |
| Centrum Finansowe Banku |
| Pyramid Games SA |
Centrum Finansowe and Pyramid Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrum Finansowe and Pyramid Games
The main advantage of trading using opposite Centrum Finansowe and Pyramid Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrum Finansowe position performs unexpectedly, Pyramid 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 Pyramid Games will offset losses from the drop in Pyramid Games' long position.| Centrum Finansowe vs. Carlson Investments SA | Centrum Finansowe vs. Asseco Business Solutions | Centrum Finansowe vs. Kogeneracja SA | Centrum Finansowe vs. Asseco South Eastern |
| Pyramid Games vs. Play2Chill SA | Pyramid Games vs. Igoria Trade SA | Pyramid Games vs. Globe Trade Centre | Pyramid Games vs. MCI Management 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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