Correlation Between Centrum Finansowe and Ultimate Games
Can any of the company-specific risk be diversified away by investing in both Centrum Finansowe and Ultimate 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 Ultimate 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 Ultimate Games SA, you can compare the effects of market volatilities on Centrum Finansowe and Ultimate 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 Ultimate Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrum Finansowe and Ultimate Games.
Diversification Opportunities for Centrum Finansowe and Ultimate Games
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Centrum and Ultimate is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Centrum Finansowe Banku and Ultimate Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultimate 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 Ultimate Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultimate Games SA has no effect on the direction of Centrum Finansowe i.e., Centrum Finansowe and Ultimate Games go up and down completely randomly.
Pair Corralation between Centrum Finansowe and Ultimate Games
Assuming the 90 days trading horizon Centrum Finansowe Banku is expected to generate 3.58 times more return on investment than Ultimate Games. However, Centrum Finansowe is 3.58 times more volatile than Ultimate Games SA. It trades about 0.04 of its potential returns per unit of risk. Ultimate Games SA is currently generating about -0.12 per unit of risk. If you would invest 560.00 in Centrum Finansowe Banku on August 30, 2024 and sell it today you would earn a total of 10.00 from holding Centrum Finansowe Banku or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centrum Finansowe Banku vs. Ultimate Games SA
Performance |
| Timeline |
| Centrum Finansowe Banku |
| Ultimate Games SA |
Centrum Finansowe and Ultimate Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrum Finansowe and Ultimate Games
The main advantage of trading using opposite Centrum Finansowe and Ultimate Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrum Finansowe position performs unexpectedly, Ultimate 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 Ultimate Games will offset losses from the drop in Ultimate Games' long position.| Centrum Finansowe vs. Carlson Investments SA | Centrum Finansowe vs. Asseco Business Solutions | Centrum Finansowe vs. Detalion Games SA | Centrum Finansowe vs. CFI Holding SA |
| Ultimate Games vs. Gamedust SA | Ultimate Games vs. Gaming Factory SA | Ultimate Games vs. CI Games SA | Ultimate Games vs. Monnari Trade 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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