Correlation Between CI Games and AC SA
Can any of the company-specific risk be diversified away by investing in both CI Games and AC SA 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 AC SA 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 AC SA, you can compare the effects of market volatilities on CI Games and AC SA 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 AC SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Games and AC SA.
Diversification Opportunities for CI Games and AC SA
Excellent diversification
The 3 months correlation between CIG and ACG is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and AC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AC SA 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 AC SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC SA has no effect on the direction of CI Games i.e., CI Games and AC SA go up and down completely randomly.
Pair Corralation between CI Games and AC SA
Assuming the 90 days trading horizon CI Games SA is expected to under-perform the AC SA. But the stock apears to be less risky and, when comparing its historical volatility, CI Games SA is 1.1 times less risky than AC SA. The stock trades about -0.29 of its potential returns per unit of risk. The AC SA is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,750 in AC SA on September 13, 2024 and sell it today you would earn a total of 130.00 from holding AC SA or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CI Games SA vs. AC SA
Performance |
| Timeline |
| CI Games SA |
| AC SA |
CI Games and AC SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Games and AC SA
The main advantage of trading using opposite CI Games and AC SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Games position performs unexpectedly, AC SA 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 AC SA will offset losses from the drop in AC SA's long position.| CI Games vs. CD PROJEKT SA | CI Games vs. PLAYWAY SA | CI Games vs. TEN SQUARE GAMES | CI Games vs. Movie Games SA |
| AC SA vs. ERG SA | AC SA vs. Asseco Business Solutions | AC SA vs. Detalion Games SA | AC SA vs. Kogeneracja SA |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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