Correlation Between CI GAMES and SBA Communications
Can any of the company-specific risk be diversified away by investing in both CI GAMES and SBA Communications 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 SBA Communications 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 SBA Communications Corp, you can compare the effects of market volatilities on CI GAMES and SBA Communications 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 SBA Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and SBA Communications.
Diversification Opportunities for CI GAMES and SBA Communications
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between CI7 and SBA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and SBA Communications Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBA Communications Corp 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 SBA Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBA Communications Corp has no effect on the direction of CI GAMES i.e., CI GAMES and SBA Communications go up and down completely randomly.
Pair Corralation between CI GAMES and SBA Communications
Assuming the 90 days horizon CI GAMES is expected to generate 2.56 times less return on investment than SBA Communications. In addition to that, CI GAMES is 2.14 times more volatile than SBA Communications Corp. It trades about 0.06 of its total potential returns per unit of risk. SBA Communications Corp is currently generating about 0.32 per unit of volatility. If you would invest 18,605 in SBA Communications Corp on November 27, 2024 and sell it today you would earn a total of 1,735 from holding SBA Communications Corp or generate 9.33% 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. SBA Communications Corp
Performance |
| Timeline |
| CI GAMES SA |
| SBA Communications Corp |
CI GAMES and SBA Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and SBA Communications
The main advantage of trading using opposite CI GAMES and SBA Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, SBA Communications 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 SBA Communications will offset losses from the drop in SBA Communications' long position.| CI GAMES vs. Nintendo Co | CI GAMES vs. Nintendo Co | CI GAMES vs. Sea Limited | CI GAMES vs. Electronic Arts |
| SBA Communications vs. Tradeweb Markets | SBA Communications vs. Cognizant Technology Solutions | SBA Communications vs. RETAIL FOOD GROUP | SBA Communications vs. FLOW TRADERS LTD |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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