Correlation Between CI GAMES and CSL
Can any of the company-specific risk be diversified away by investing in both CI GAMES and CSL 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 CSL 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 CSL Limited, you can compare the effects of market volatilities on CI GAMES and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and CSL.
Diversification Opportunities for CI GAMES and CSL
Poor diversification
The 3 months correlation between CI7 and CSL is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and CSL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL Limited 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL Limited has no effect on the direction of CI GAMES i.e., CI GAMES and CSL go up and down completely randomly.
Pair Corralation between CI GAMES and CSL
Assuming the 90 days horizon CI GAMES SA is expected to under-perform the CSL. In addition to that, CI GAMES is 2.25 times more volatile than CSL Limited. It trades about -0.03 of its total potential returns per unit of risk. CSL Limited is currently generating about -0.05 per unit of volatility. If you would invest 17,420 in CSL Limited on September 13, 2024 and sell it today you would lose (320.00) from holding CSL Limited or give up 1.84% 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. CSL Limited
Performance |
| Timeline |
| CI GAMES SA |
| CSL Limited |
CI GAMES and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and CSL
The main advantage of trading using opposite CI GAMES and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL'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 |
| CSL vs. Jacquet Metal Service | CSL vs. SLR Investment Corp | CSL vs. Virtus Investment Partners | CSL vs. Apollo Investment Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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