Correlation Between CI GAMES and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both CI GAMES and KENEDIX OFFICE 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 KENEDIX OFFICE 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 KENEDIX OFFICE INV, you can compare the effects of market volatilities on CI GAMES and KENEDIX OFFICE 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 KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and KENEDIX OFFICE.
Diversification Opportunities for CI GAMES and KENEDIX OFFICE
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CI7 and KENEDIX is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV 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 KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of CI GAMES i.e., CI GAMES and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between CI GAMES and KENEDIX OFFICE
Assuming the 90 days horizon CI GAMES SA is expected to generate 3.2 times more return on investment than KENEDIX OFFICE. However, CI GAMES is 3.2 times more volatile than KENEDIX OFFICE INV. It trades about -0.01 of its potential returns per unit of risk. KENEDIX OFFICE INV is currently generating about -0.1 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. KENEDIX OFFICE INV
Performance |
| Timeline |
| CI GAMES SA |
| KENEDIX OFFICE INV |
CI GAMES and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and KENEDIX OFFICE
The main advantage of trading using opposite CI GAMES and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE'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 |
| KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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