Correlation Between CI Games and Apator SA
Can any of the company-specific risk be diversified away by investing in both CI Games and Apator 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 Apator 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 Apator SA, you can compare the effects of market volatilities on CI Games and Apator 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 Apator SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Games and Apator SA.
Diversification Opportunities for CI Games and Apator SA
Poor diversification
The 3 months correlation between CIG and Apator is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and Apator SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apator 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 Apator SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apator SA has no effect on the direction of CI Games i.e., CI Games and Apator SA go up and down completely randomly.
Pair Corralation between CI Games and Apator SA
Assuming the 90 days trading horizon CI Games SA is expected to under-perform the Apator SA. But the stock apears to be less risky and, when comparing its historical volatility, CI Games SA is 1.24 times less risky than Apator SA. The stock trades about -0.29 of its potential returns per unit of risk. The Apator SA is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 1,827 in Apator SA on September 12, 2024 and sell it today you would lose (119.00) from holding Apator SA or give up 6.51% 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. Apator SA
Performance |
| Timeline |
| CI Games SA |
| Apator SA |
CI Games and Apator SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Games and Apator SA
The main advantage of trading using opposite CI Games and Apator SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Games position performs unexpectedly, Apator 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 Apator SA will offset losses from the drop in Apator SA'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 |
| Apator SA vs. CI Games SA | Apator SA vs. Intersport Polska SA | Apator SA vs. Live Motion Games | Apator SA vs. GreenX Metals |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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