Correlation Between CI GAMES and ASOS PLC
Can any of the company-specific risk be diversified away by investing in both CI GAMES and ASOS PLC 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 ASOS PLC 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 ASOS PLC, you can compare the effects of market volatilities on CI GAMES and ASOS PLC 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 ASOS PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and ASOS PLC.
Diversification Opportunities for CI GAMES and ASOS PLC
Weak diversification
The 3 months correlation between CI7 and ASOS is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and ASOS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASOS PLC 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 ASOS PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASOS PLC has no effect on the direction of CI GAMES i.e., CI GAMES and ASOS PLC go up and down completely randomly.
Pair Corralation between CI GAMES and ASOS PLC
Assuming the 90 days horizon CI GAMES SA is expected to under-perform the ASOS PLC. In addition to that, CI GAMES is 1.27 times more volatile than ASOS PLC. It trades about -0.11 of its total potential returns per unit of risk. ASOS PLC is currently generating about 0.26 per unit of volatility. If you would invest 405.00 in ASOS PLC on September 13, 2024 and sell it today you would earn a total of 69.00 from holding ASOS PLC or generate 17.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CI GAMES SA vs. ASOS PLC
Performance |
| Timeline |
| CI GAMES SA |
| ASOS PLC |
CI GAMES and ASOS PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and ASOS PLC
The main advantage of trading using opposite CI GAMES and ASOS PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, ASOS PLC 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 ASOS PLC will offset losses from the drop in ASOS PLC'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 |
| ASOS PLC vs. ELECTRONIC ARTS | ASOS PLC vs. HF SINCLAIR P | ASOS PLC vs. Methode Electronics | ASOS PLC vs. STMicroelectronics NV |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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