Correlation Between CI GAMES and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both CI GAMES and PARKEN Sport 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 PARKEN Sport 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 PARKEN Sport Entertainment, you can compare the effects of market volatilities on CI GAMES and PARKEN Sport 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 PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and PARKEN Sport.
Diversification Opportunities for CI GAMES and PARKEN Sport
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between CI7 and PARKEN is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and PARKEN Sport Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKEN Sport Enterta 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 PARKEN Sport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKEN Sport Enterta has no effect on the direction of CI GAMES i.e., CI GAMES and PARKEN Sport go up and down completely randomly.
Pair Corralation between CI GAMES and PARKEN Sport
Assuming the 90 days horizon CI GAMES SA is expected to under-perform the PARKEN Sport. In addition to that, CI GAMES is 2.32 times more volatile than PARKEN Sport Entertainment. It trades about -0.02 of its total potential returns per unit of risk. PARKEN Sport Entertainment is currently generating about -0.02 per unit of volatility. If you would invest 1,610 in PARKEN Sport Entertainment on September 4, 2024 and sell it today you would lose (15.00) from holding PARKEN Sport Entertainment or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. PARKEN Sport Entertainment
Performance |
| Timeline |
| CI GAMES SA |
| PARKEN Sport Enterta |
CI GAMES and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and PARKEN Sport
The main advantage of trading using opposite CI GAMES and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, PARKEN Sport 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 PARKEN Sport will offset losses from the drop in PARKEN Sport'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 |
| PARKEN Sport vs. LIFEWAY FOODS | PARKEN Sport vs. AUST AGRICULTURAL | PARKEN Sport vs. Lifeway Foods | PARKEN Sport vs. TYSON FOODS A |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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