Correlation Between CI Games and Genomtec
Can any of the company-specific risk be diversified away by investing in both CI Games and Genomtec 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 Genomtec 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 Genomtec SA, you can compare the effects of market volatilities on CI Games and Genomtec 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 Genomtec. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Games and Genomtec.
Diversification Opportunities for CI Games and Genomtec
Average diversification
The 3 months correlation between CIG and Genomtec is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and Genomtec SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genomtec 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 Genomtec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genomtec SA has no effect on the direction of CI Games i.e., CI Games and Genomtec go up and down completely randomly.
Pair Corralation between CI Games and Genomtec
Assuming the 90 days trading horizon CI Games SA is expected to generate 0.91 times more return on investment than Genomtec. However, CI Games SA is 1.1 times less risky than Genomtec. It trades about 0.03 of its potential returns per unit of risk. Genomtec SA is currently generating about -0.02 per unit of risk. If you would invest 153.00 in CI Games SA on October 22, 2024 and sell it today you would earn a total of 14.00 from holding CI Games SA or generate 9.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.55% |
| Values | Daily Returns |
CI Games SA vs. Genomtec SA
Performance |
| Timeline |
| CI Games SA |
| Genomtec SA |
CI Games and Genomtec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Games and Genomtec
The main advantage of trading using opposite CI Games and Genomtec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Games position performs unexpectedly, Genomtec 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 Genomtec will offset losses from the drop in Genomtec's long position.| CI Games vs. PZ Cormay SA | CI Games vs. PMPG Polskie Media | CI Games vs. ING Bank lski | CI Games vs. Road Studio SA |
| Genomtec vs. GreenX Metals | Genomtec vs. Cloud Technologies SA | Genomtec vs. SOFTWARE MANSION SPOLKA | Genomtec vs. Road Studio 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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