Correlation Between CI GAMES and LION ONE
Can any of the company-specific risk be diversified away by investing in both CI GAMES and LION ONE 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 LION ONE 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 LION ONE METALS, you can compare the effects of market volatilities on CI GAMES and LION ONE 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 LION ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and LION ONE.
Diversification Opportunities for CI GAMES and LION ONE
Poor diversification
The 3 months correlation between CI7 and LION is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and LION ONE METALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LION ONE METALS 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 LION ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LION ONE METALS has no effect on the direction of CI GAMES i.e., CI GAMES and LION ONE go up and down completely randomly.
Pair Corralation between CI GAMES and LION ONE
Assuming the 90 days horizon CI GAMES SA is expected to generate 1.31 times more return on investment than LION ONE. However, CI GAMES is 1.31 times more volatile than LION ONE METALS. It trades about 0.01 of its potential returns per unit of risk. LION ONE METALS is currently generating about -0.04 per unit of risk. If you would invest 49.00 in CI GAMES SA on October 13, 2024 and sell it today you would lose (18.00) from holding CI GAMES SA or give up 36.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. LION ONE METALS
Performance |
| Timeline |
| CI GAMES SA |
| LION ONE METALS |
CI GAMES and LION ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and LION ONE
The main advantage of trading using opposite CI GAMES and LION ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, LION ONE 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 LION ONE will offset losses from the drop in LION ONE's long position.| CI GAMES vs. Aristocrat Leisure Limited | CI GAMES vs. WESANA HEALTH HOLD | CI GAMES vs. USWE SPORTS AB | CI GAMES vs. YOOMA WELLNESS 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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