Correlation Between CI GAMES and Visa
Can any of the company-specific risk be diversified away by investing in both CI GAMES and Visa 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 Visa 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 Visa Inc, you can compare the effects of market volatilities on CI GAMES and Visa 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 Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and Visa.
Diversification Opportunities for CI GAMES and Visa
Excellent diversification
The 3 months correlation between CI7 and Visa is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and Visa Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Inc 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 Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Inc has no effect on the direction of CI GAMES i.e., CI GAMES and Visa go up and down completely randomly.
Pair Corralation between CI GAMES and Visa
Assuming the 90 days horizon CI GAMES is expected to generate 1.7 times less return on investment than Visa. In addition to that, CI GAMES is 5.02 times more volatile than Visa Inc. It trades about 0.01 of its total potential returns per unit of risk. Visa Inc is currently generating about 0.09 per unit of volatility. If you would invest 18,976 in Visa Inc on September 12, 2024 and sell it today you would earn a total of 10,339 from holding Visa Inc or generate 54.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. Visa Inc
Performance |
| Timeline |
| CI GAMES SA |
| Visa Inc |
CI GAMES and Visa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and Visa
The main advantage of trading using opposite CI GAMES and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, Visa 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 Visa will offset losses from the drop in Visa's long position.| CI GAMES vs. Haverty Furniture Companies | CI GAMES vs. ETFS Coffee ETC | CI GAMES vs. VARIOUS EATERIES LS | CI GAMES vs. North American Construction |
| Visa vs. CI GAMES SA | Visa vs. TSOGO SUN GAMING | Visa vs. Alfa Financial Software | Visa vs. International Game Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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