Correlation Between CI GAMES and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both CI GAMES and GAMESTOP 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 GAMESTOP 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 GAMESTOP, you can compare the effects of market volatilities on CI GAMES and GAMESTOP 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 GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and GAMESTOP.
Diversification Opportunities for CI GAMES and GAMESTOP
Excellent diversification
The 3 months correlation between CI7 and GAMESTOP is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP 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 GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of CI GAMES i.e., CI GAMES and GAMESTOP go up and down completely randomly.
Pair Corralation between CI GAMES and GAMESTOP
Assuming the 90 days horizon CI GAMES SA is expected to under-perform the GAMESTOP. But the stock apears to be less risky and, when comparing its historical volatility, CI GAMES SA is 2.15 times less risky than GAMESTOP. The stock trades about -0.02 of its potential returns per unit of risk. The GAMESTOP is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,441 in GAMESTOP on September 3, 2024 and sell it today you would earn a total of 1,159 from holding GAMESTOP or generate 80.43% 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. GAMESTOP
Performance |
| Timeline |
| CI GAMES SA |
| GAMESTOP |
CI GAMES and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and GAMESTOP
The main advantage of trading using opposite CI GAMES and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP's long position.| CI GAMES vs. Nintendo Co | CI GAMES vs. Nintendo Co | CI GAMES vs. Sea Limited | CI GAMES vs. Take Two Interactive Software |
| GAMESTOP vs. QBE Insurance Group | GAMESTOP vs. Canon Marketing Japan | GAMESTOP vs. CDN IMPERIAL BANK | GAMESTOP vs. The Hanover Insurance |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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