Correlation Between CI Games and Inter Cars
Can any of the company-specific risk be diversified away by investing in both CI Games and Inter Cars 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 Inter Cars 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 Inter Cars SA, you can compare the effects of market volatilities on CI Games and Inter Cars 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 Inter Cars. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Games and Inter Cars.
Diversification Opportunities for CI Games and Inter Cars
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CIG and Inter is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and Inter Cars SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Cars 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 Inter Cars. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Cars SA has no effect on the direction of CI Games i.e., CI Games and Inter Cars go up and down completely randomly.
Pair Corralation between CI Games and Inter Cars
Assuming the 90 days trading horizon CI Games SA is expected to under-perform the Inter Cars. In addition to that, CI Games is 2.08 times more volatile than Inter Cars SA. It trades about -0.01 of its total potential returns per unit of risk. Inter Cars SA is currently generating about 0.02 per unit of volatility. If you would invest 45,676 in Inter Cars SA on September 13, 2024 and sell it today you would earn a total of 6,224 from holding Inter Cars SA or generate 13.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Games SA vs. Inter Cars SA
Performance |
| Timeline |
| CI Games SA |
| Inter Cars SA |
CI Games and Inter Cars Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Games and Inter Cars
The main advantage of trading using opposite CI Games and Inter Cars positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Games position performs unexpectedly, Inter Cars 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 Inter Cars will offset losses from the drop in Inter Cars' 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 |
| Inter Cars vs. Banco Santander SA | Inter Cars vs. UniCredit SpA | Inter Cars vs. CEZ as | Inter Cars vs. Polski Koncern Naftowy |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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