Correlation Between CI Games and Powszechny Zaklad
Can any of the company-specific risk be diversified away by investing in both CI Games and Powszechny Zaklad 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 Powszechny Zaklad 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 Powszechny Zaklad Ubezpieczen, you can compare the effects of market volatilities on CI Games and Powszechny Zaklad 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 Powszechny Zaklad. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Games and Powszechny Zaklad.
Diversification Opportunities for CI Games and Powszechny Zaklad
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CIG and Powszechny is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and Powszechny Zaklad Ubezpieczen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powszechny Zaklad 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 Powszechny Zaklad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powszechny Zaklad has no effect on the direction of CI Games i.e., CI Games and Powszechny Zaklad go up and down completely randomly.
Pair Corralation between CI Games and Powszechny Zaklad
Assuming the 90 days trading horizon CI Games is expected to generate 3.17 times less return on investment than Powszechny Zaklad. In addition to that, CI Games is 1.48 times more volatile than Powszechny Zaklad Ubezpieczen. It trades about 0.06 of its total potential returns per unit of risk. Powszechny Zaklad Ubezpieczen is currently generating about 0.28 per unit of volatility. If you would invest 4,997 in Powszechny Zaklad Ubezpieczen on November 29, 2024 and sell it today you would earn a total of 451.00 from holding Powszechny Zaklad Ubezpieczen or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Games SA vs. Powszechny Zaklad Ubezpieczen
Performance |
| Timeline |
| CI Games SA |
| Powszechny Zaklad |
CI Games and Powszechny Zaklad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Games and Powszechny Zaklad
The main advantage of trading using opposite CI Games and Powszechny Zaklad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Games position performs unexpectedly, Powszechny Zaklad 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 Powszechny Zaklad will offset losses from the drop in Powszechny Zaklad's long position.| CI Games vs. PZ Cormay SA | CI Games vs. Creativeforge Games SA | CI Games vs. BNP Paribas Bank | CI Games vs. Bank Millennium SA |
| Powszechny Zaklad vs. Alior Bank SA | Powszechny Zaklad vs. Enter Air SA | Powszechny Zaklad vs. mBank SA | Powszechny Zaklad vs. Noble Financials 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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