Correlation Between CI GAMES and COMMONWBK AUSTRSPADRS
Can any of the company-specific risk be diversified away by investing in both CI GAMES and COMMONWBK AUSTRSPADRS 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 COMMONWBK AUSTRSPADRS 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 COMMONWBK AUSTRSPADRS, you can compare the effects of market volatilities on CI GAMES and COMMONWBK AUSTRSPADRS 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 COMMONWBK AUSTRSPADRS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and COMMONWBK AUSTRSPADRS.
Diversification Opportunities for CI GAMES and COMMONWBK AUSTRSPADRS
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CI7 and COMMONWBK is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and COMMONWBK AUSTRSPADRS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMMONWBK AUSTRSPADRS 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 COMMONWBK AUSTRSPADRS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMMONWBK AUSTRSPADRS has no effect on the direction of CI GAMES i.e., CI GAMES and COMMONWBK AUSTRSPADRS go up and down completely randomly.
Pair Corralation between CI GAMES and COMMONWBK AUSTRSPADRS
Assuming the 90 days horizon CI GAMES SA is expected to under-perform the COMMONWBK AUSTRSPADRS. In addition to that, CI GAMES is 2.77 times more volatile than COMMONWBK AUSTRSPADRS. It trades about -0.02 of its total potential returns per unit of risk. COMMONWBK AUSTRSPADRS is currently generating about 0.42 per unit of volatility. If you would invest 8,650 in COMMONWBK AUSTRSPADRS on September 4, 2024 and sell it today you would earn a total of 1,000.00 from holding COMMONWBK AUSTRSPADRS or generate 11.56% 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. COMMONWBK AUSTRSPADRS
Performance |
| Timeline |
| CI GAMES SA |
| COMMONWBK AUSTRSPADRS |
CI GAMES and COMMONWBK AUSTRSPADRS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and COMMONWBK AUSTRSPADRS
The main advantage of trading using opposite CI GAMES and COMMONWBK AUSTRSPADRS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, COMMONWBK AUSTRSPADRS 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 COMMONWBK AUSTRSPADRS will offset losses from the drop in COMMONWBK AUSTRSPADRS'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 |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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