Correlation Between CI GAMES and TAT HONG
Can any of the company-specific risk be diversified away by investing in both CI GAMES and TAT HONG 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 CI GAMES and TAT HONG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI GAMES SA and TAT HONG EQSRV, you can compare the effects of market volatilities on CI GAMES and TAT HONG 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 CI GAMES with a short position of TAT HONG. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and TAT HONG.
Diversification Opportunities for CI GAMES and TAT HONG
Very good diversification
The 3 months correlation between CI7 and TAT is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and TAT HONG EQSRV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAT HONG EQSRV and CI 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 CI GAMES SA are associated (or correlated) with TAT HONG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAT HONG EQSRV has no effect on the direction of CI GAMES i.e., CI GAMES and TAT HONG go up and down completely randomly.
Pair Corralation between CI GAMES and TAT HONG
Assuming the 90 days horizon CI GAMES SA is expected to under-perform the TAT HONG. But the stock apears to be less risky and, when comparing its historical volatility, CI GAMES SA is 1.96 times less risky than TAT HONG. The stock trades about -0.01 of its potential returns per unit of risk. The TAT HONG EQSRV is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 13.00 in TAT HONG EQSRV on September 3, 2024 and sell it today you would earn a total of 1.00 from holding TAT HONG EQSRV or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. TAT HONG EQSRV
Performance |
| Timeline |
| CI GAMES SA |
| TAT HONG EQSRV |
CI GAMES and TAT HONG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and TAT HONG
The main advantage of trading using opposite CI GAMES and TAT HONG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, TAT HONG 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 TAT HONG will offset losses from the drop in TAT HONG's long position.| CI GAMES vs. Nintendo Co | CI GAMES vs. Nintendo Co | CI GAMES vs. Sea Limited | CI GAMES vs. Take Two Interactive Software |
| TAT HONG vs. ASURE SOFTWARE | TAT HONG vs. Guidewire Software | TAT HONG vs. PSI Software AG | TAT HONG vs. UPDATE SOFTWARE |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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