Correlation Between CI GAMES and TSOGO SUN
Can any of the company-specific risk be diversified away by investing in both CI GAMES and TSOGO SUN 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 TSOGO SUN 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 TSOGO SUN GAMING, you can compare the effects of market volatilities on CI GAMES and TSOGO SUN 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 TSOGO SUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and TSOGO SUN.
Diversification Opportunities for CI GAMES and TSOGO SUN
Very weak diversification
The 3 months correlation between CI7 and TSOGO is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and TSOGO SUN GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSOGO SUN GAMING 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 TSOGO SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSOGO SUN GAMING has no effect on the direction of CI GAMES i.e., CI GAMES and TSOGO SUN go up and down completely randomly.
Pair Corralation between CI GAMES and TSOGO SUN
Assuming the 90 days horizon CI GAMES SA is expected to generate 2.05 times more return on investment than TSOGO SUN. However, CI GAMES is 2.05 times more volatile than TSOGO SUN GAMING. It trades about -0.01 of its potential returns per unit of risk. TSOGO SUN GAMING is currently generating about -0.05 per unit of risk. If you would invest 34.00 in CI GAMES SA on September 12, 2024 and sell it today you would lose (2.00) from holding CI GAMES SA or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. TSOGO SUN GAMING
Performance |
| Timeline |
| CI GAMES SA |
| TSOGO SUN GAMING |
CI GAMES and TSOGO SUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and TSOGO SUN
The main advantage of trading using opposite CI GAMES and TSOGO SUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, TSOGO SUN 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 TSOGO SUN will offset losses from the drop in TSOGO SUN'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 |
| TSOGO SUN vs. Sands China | TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB | TSOGO SUN vs. Norsk Hydro ASA |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |