Correlation Between CI GAMES and Carlsberg
Can any of the company-specific risk be diversified away by investing in both CI GAMES and Carlsberg 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 Carlsberg 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 Carlsberg AS, you can compare the effects of market volatilities on CI GAMES and Carlsberg 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 Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and Carlsberg.
Diversification Opportunities for CI GAMES and Carlsberg
Very weak diversification
The 3 months correlation between CI7 and Carlsberg is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS 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 Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of CI GAMES i.e., CI GAMES and Carlsberg go up and down completely randomly.
Pair Corralation between CI GAMES and Carlsberg
Assuming the 90 days horizon CI GAMES is expected to generate 1.03 times less return on investment than Carlsberg. In addition to that, CI GAMES is 2.81 times more volatile than Carlsberg AS. It trades about 0.01 of its total potential returns per unit of risk. Carlsberg AS is currently generating about 0.04 per unit of volatility. If you would invest 8,367 in Carlsberg AS on November 19, 2024 and sell it today you would earn a total of 3,088 from holding Carlsberg AS or generate 36.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. Carlsberg AS
Performance |
| Timeline |
| CI GAMES SA |
| Carlsberg AS |
CI GAMES and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and Carlsberg
The main advantage of trading using opposite CI GAMES and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.| CI GAMES vs. Nintendo Co | CI GAMES vs. NEXON Co | CI GAMES vs. Take Two Interactive Software | CI GAMES vs. Aristocrat Leisure Limited |
| Carlsberg vs. KIMBALL ELECTRONICS | Carlsberg vs. Uber Technologies | Carlsberg vs. Nucletron Electronic Aktiengesellschaft | Carlsberg vs. Firan Technology Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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