Correlation Between CI GAMES and AECOM TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both CI GAMES and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY 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 AECOM TECHNOLOGY, you can compare the effects of market volatilities on CI GAMES and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and AECOM TECHNOLOGY.
Diversification Opportunities for CI GAMES and AECOM TECHNOLOGY
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CI7 and AECOM is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and AECOM TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECOM TECHNOLOGY 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 AECOM TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECOM TECHNOLOGY has no effect on the direction of CI GAMES i.e., CI GAMES and AECOM TECHNOLOGY go up and down completely randomly.
Pair Corralation between CI GAMES and AECOM TECHNOLOGY
Assuming the 90 days horizon CI GAMES SA is expected to under-perform the AECOM TECHNOLOGY. In addition to that, CI GAMES is 1.87 times more volatile than AECOM TECHNOLOGY. It trades about -0.11 of its total potential returns per unit of risk. AECOM TECHNOLOGY is currently generating about 0.05 per unit of volatility. If you would invest 10,400 in AECOM TECHNOLOGY on September 13, 2024 and sell it today you would earn a total of 200.00 from holding AECOM TECHNOLOGY or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CI GAMES SA vs. AECOM TECHNOLOGY
Performance |
| Timeline |
| CI GAMES SA |
| AECOM TECHNOLOGY |
CI GAMES and AECOM TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and AECOM TECHNOLOGY
The main advantage of trading using opposite CI GAMES and AECOM TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, AECOM TECHNOLOGY 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 AECOM TECHNOLOGY will offset losses from the drop in AECOM TECHNOLOGY'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 |
| AECOM TECHNOLOGY vs. Apple Inc | AECOM TECHNOLOGY vs. Apple Inc | AECOM TECHNOLOGY vs. Apple Inc | AECOM TECHNOLOGY vs. Apple Inc |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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