Correlation Between CI Games and Hortico SA
Can any of the company-specific risk be diversified away by investing in both CI Games and Hortico 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 Hortico 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 Hortico SA, you can compare the effects of market volatilities on CI Games and Hortico 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 Hortico SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Games and Hortico SA.
Diversification Opportunities for CI Games and Hortico SA
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CIG and Hortico is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and Hortico SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hortico 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 Hortico SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hortico SA has no effect on the direction of CI Games i.e., CI Games and Hortico SA go up and down completely randomly.
Pair Corralation between CI Games and Hortico SA
Assuming the 90 days trading horizon CI Games SA is expected to under-perform the Hortico SA. But the stock apears to be less risky and, when comparing its historical volatility, CI Games SA is 1.15 times less risky than Hortico SA. The stock trades about -0.29 of its potential returns per unit of risk. The Hortico SA is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 650.00 in Hortico SA on September 13, 2024 and sell it today you would lose (10.00) from holding Hortico SA or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Games SA vs. Hortico SA
Performance |
| Timeline |
| CI Games SA |
| Hortico SA |
CI Games and Hortico SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Games and Hortico SA
The main advantage of trading using opposite CI Games and Hortico SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Games position performs unexpectedly, Hortico 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 Hortico SA will offset losses from the drop in Hortico SA's 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 |
| Hortico SA vs. PZ Cormay SA | Hortico SA vs. Creotech Instruments SA | Hortico SA vs. Intersport Polska SA | Hortico SA vs. Echo Investment 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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