Correlation Between CI GAMES and Broadwind
Can any of the company-specific risk be diversified away by investing in both CI GAMES and Broadwind 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 Broadwind 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 Broadwind, you can compare the effects of market volatilities on CI GAMES and Broadwind 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 Broadwind. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and Broadwind.
Diversification Opportunities for CI GAMES and Broadwind
Very weak diversification
The 3 months correlation between CI7 and Broadwind is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and Broadwind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadwind 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 Broadwind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadwind has no effect on the direction of CI GAMES i.e., CI GAMES and Broadwind go up and down completely randomly.
Pair Corralation between CI GAMES and Broadwind
Assuming the 90 days horizon CI GAMES SA is expected to under-perform the Broadwind. But the stock apears to be less risky and, when comparing its historical volatility, CI GAMES SA is 1.0 times less risky than Broadwind. The stock trades about -0.01 of its potential returns per unit of risk. The Broadwind is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 182.00 in Broadwind on September 4, 2024 and sell it today you would lose (9.00) from holding Broadwind or give up 4.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. Broadwind
Performance |
| Timeline |
| CI GAMES SA |
| Broadwind |
CI GAMES and Broadwind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and Broadwind
The main advantage of trading using opposite CI GAMES and Broadwind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, Broadwind 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 Broadwind will offset losses from the drop in Broadwind'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 |
| Broadwind vs. MINCO SILVER | Broadwind vs. Ming Le Sports | Broadwind vs. GRIFFIN MINING LTD | Broadwind vs. CI GAMES SA |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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