Correlation Between CI GAMES and HEXINDO ADIPERKASA
Can any of the company-specific risk be diversified away by investing in both CI GAMES and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA, you can compare the effects of market volatilities on CI GAMES and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and HEXINDO ADIPERKASA.
Diversification Opportunities for CI GAMES and HEXINDO ADIPERKASA
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CI7 and HEXINDO is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and HEXINDO ADIPERKASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEXINDO ADIPERKASA has no effect on the direction of CI GAMES i.e., CI GAMES and HEXINDO ADIPERKASA go up and down completely randomly.
Pair Corralation between CI GAMES and HEXINDO ADIPERKASA
Assuming the 90 days horizon CI GAMES SA is expected to generate 2.0 times more return on investment than HEXINDO ADIPERKASA. However, CI GAMES is 2.0 times more volatile than HEXINDO ADIPERKASA. It trades about -0.02 of its potential returns per unit of risk. HEXINDO ADIPERKASA is currently generating about -0.29 per unit of risk. If you would invest 34.00 in CI GAMES SA on September 4, 2024 and sell it today you would lose (1.00) from holding CI GAMES SA or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CI GAMES SA vs. HEXINDO ADIPERKASA
Performance |
| Timeline |
| CI GAMES SA |
| HEXINDO ADIPERKASA |
CI GAMES and HEXINDO ADIPERKASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and HEXINDO ADIPERKASA
The main advantage of trading using opposite CI GAMES and HEXINDO ADIPERKASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA will offset losses from the drop in HEXINDO ADIPERKASA'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 |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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