Correlation Between CI Games and Asseco South
Can any of the company-specific risk be diversified away by investing in both CI Games and Asseco South 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 Asseco South 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 Asseco South Eastern, you can compare the effects of market volatilities on CI Games and Asseco South 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 Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Games and Asseco South.
Diversification Opportunities for CI Games and Asseco South
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CIG and Asseco is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and Asseco South Eastern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asseco South Eastern 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 Asseco South. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asseco South Eastern has no effect on the direction of CI Games i.e., CI Games and Asseco South go up and down completely randomly.
Pair Corralation between CI Games and Asseco South
Assuming the 90 days trading horizon CI Games SA is expected to under-perform the Asseco South. But the stock apears to be less risky and, when comparing its historical volatility, CI Games SA is 1.33 times less risky than Asseco South. The stock trades about -0.19 of its potential returns per unit of risk. The Asseco South Eastern is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 5,000 in Asseco South Eastern on August 30, 2024 and sell it today you would lose (190.00) from holding Asseco South Eastern or give up 3.8% 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. Asseco South Eastern
Performance |
| Timeline |
| CI Games SA |
| Asseco South Eastern |
CI Games and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Games and Asseco South
The main advantage of trading using opposite CI Games and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Games position performs unexpectedly, Asseco South 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 Asseco South will offset losses from the drop in Asseco South's long position.| CI Games vs. Movie Games SA | CI Games vs. 3R Games SA | CI Games vs. Intersport Polska SA | CI Games vs. Monnari Trade SA |
| Asseco South vs. UF Games SA | Asseco South vs. LSI Software SA | Asseco South vs. CI Games SA | Asseco South vs. SOFTWARE MANSION SPOLKA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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