Correlation Between CI GAMES and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both CI GAMES and XLMedia PLC 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 XLMedia PLC 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 XLMedia PLC, you can compare the effects of market volatilities on CI GAMES and XLMedia PLC 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 XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and XLMedia PLC.
Diversification Opportunities for CI GAMES and XLMedia PLC
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CI7 and XLMedia is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC 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 XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of CI GAMES i.e., CI GAMES and XLMedia PLC go up and down completely randomly.
Pair Corralation between CI GAMES and XLMedia PLC
If you would invest 14.00 in XLMedia PLC on September 4, 2024 and sell it today you would earn a total of 0.00 from holding XLMedia PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. XLMedia PLC
Performance |
| Timeline |
| CI GAMES SA |
| XLMedia PLC |
CI GAMES and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and XLMedia PLC
The main advantage of trading using opposite CI GAMES and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, XLMedia PLC 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| CI GAMES vs. CDN IMPERIAL BANK | CI GAMES vs. VIRG NATL BANKSH | CI GAMES vs. ADRIATIC METALS LS 013355 | CI GAMES vs. GREENX METALS LTD |
| XLMedia PLC vs. Alphabet Class A | XLMedia PLC vs. Meta Platforms | XLMedia PLC vs. Meta Platforms | XLMedia PLC vs. Prosus NV |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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