Correlation Between CI Games and Grupa KTY
Can any of the company-specific risk be diversified away by investing in both CI Games and Grupa KTY 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 Grupa KTY 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 Grupa KTY SA, you can compare the effects of market volatilities on CI Games and Grupa KTY 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 Grupa KTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Games and Grupa KTY.
Diversification Opportunities for CI Games and Grupa KTY
Very weak diversification
The 3 months correlation between CIG and Grupa is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and Grupa KTY SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupa KTY 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 Grupa KTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupa KTY SA has no effect on the direction of CI Games i.e., CI Games and Grupa KTY go up and down completely randomly.
Pair Corralation between CI Games and Grupa KTY
Assuming the 90 days trading horizon CI Games SA is expected to under-perform the Grupa KTY. But the stock apears to be less risky and, when comparing its historical volatility, CI Games SA is 1.24 times less risky than Grupa KTY. The stock trades about -0.07 of its potential returns per unit of risk. The Grupa KTY SA is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 78,400 in Grupa KTY SA on September 12, 2024 and sell it today you would lose (7,000) from holding Grupa KTY SA or give up 8.93% 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. Grupa KTY SA
Performance |
| Timeline |
| CI Games SA |
| Grupa KTY SA |
CI Games and Grupa KTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Games and Grupa KTY
The main advantage of trading using opposite CI Games and Grupa KTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Games position performs unexpectedly, Grupa KTY 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 Grupa KTY will offset losses from the drop in Grupa KTY'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 |
| Grupa KTY vs. Noble Financials SA | Grupa KTY vs. Quantum Software SA | Grupa KTY vs. Medicofarma Biotech SA | Grupa KTY vs. Creotech Instruments 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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