Correlation Between CI GAMES and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both CI GAMES and MAVEN WIRELESS 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 MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on CI GAMES and MAVEN WIRELESS 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 MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and MAVEN WIRELESS.
Diversification Opportunities for CI GAMES and MAVEN WIRELESS
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CI7 and MAVEN is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of CI GAMES i.e., CI GAMES and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between CI GAMES and MAVEN WIRELESS
Assuming the 90 days horizon CI GAMES SA is expected to generate 1.59 times more return on investment than MAVEN WIRELESS. However, CI GAMES is 1.59 times more volatile than MAVEN WIRELESS SWEDEN. It trades about -0.01 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about -0.11 per unit of risk. If you would invest 34.00 in CI GAMES SA on September 12, 2024 and sell it today you would lose (2.00) from holding CI GAMES SA or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| CI GAMES SA |
| MAVEN WIRELESS SWEDEN |
CI GAMES and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and MAVEN WIRELESS
The main advantage of trading using opposite CI GAMES and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, MAVEN WIRELESS 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| CI GAMES vs. NEXON Co | CI GAMES vs. Take Two Interactive Software | CI GAMES vs. Superior Plus Corp | CI GAMES vs. SIVERS SEMICONDUCTORS AB |
| MAVEN WIRELESS vs. Superior Plus Corp | MAVEN WIRELESS vs. SIVERS SEMICONDUCTORS AB | MAVEN WIRELESS vs. Norsk Hydro ASA | MAVEN WIRELESS vs. Reliance Steel Aluminum |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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