Correlation Between CI Games and Alior Bank
Can any of the company-specific risk be diversified away by investing in both CI Games and Alior Bank 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 Alior Bank 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 Alior Bank SA, you can compare the effects of market volatilities on CI Games and Alior Bank 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 Alior Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Games and Alior Bank.
Diversification Opportunities for CI Games and Alior Bank
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CIG and Alior is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and Alior Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alior Bank 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 Alior Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alior Bank SA has no effect on the direction of CI Games i.e., CI Games and Alior Bank go up and down completely randomly.
Pair Corralation between CI Games and Alior Bank
Assuming the 90 days trading horizon CI Games SA is expected to generate 0.61 times more return on investment than Alior Bank. However, CI Games SA is 1.65 times less risky than Alior Bank. It trades about -0.21 of its potential returns per unit of risk. Alior Bank SA is currently generating about -0.14 per unit of risk. If you would invest 151.00 in CI Games SA on September 12, 2024 and sell it today you would lose (8.00) from holding CI Games SA or give up 5.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Games SA vs. Alior Bank SA
Performance |
| Timeline |
| CI Games SA |
| Alior Bank SA |
CI Games and Alior Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Games and Alior Bank
The main advantage of trading using opposite CI Games and Alior Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Games position performs unexpectedly, Alior Bank 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 Alior Bank will offset losses from the drop in Alior Bank's long position.| CI Games vs. CD PROJEKT SA | CI Games vs. PLAYWAY SA | CI Games vs. 11 bit studios | CI Games vs. TEN SQUARE GAMES |
| Alior Bank vs. Banco Santander SA | Alior Bank vs. Asseco Business Solutions | Alior Bank vs. Detalion Games SA | Alior Bank vs. Asseco South Eastern |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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