Correlation Between CI Games and Skyline Investment
Can any of the company-specific risk be diversified away by investing in both CI Games and Skyline Investment 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 Skyline Investment 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 Skyline Investment SA, you can compare the effects of market volatilities on CI Games and Skyline Investment 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 Skyline Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Games and Skyline Investment.
Diversification Opportunities for CI Games and Skyline Investment
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between CIG and Skyline is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and Skyline Investment SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skyline Investment 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 Skyline Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skyline Investment has no effect on the direction of CI Games i.e., CI Games and Skyline Investment go up and down completely randomly.
Pair Corralation between CI Games and Skyline Investment
Assuming the 90 days trading horizon CI Games SA is expected to under-perform the Skyline Investment. But the stock apears to be less risky and, when comparing its historical volatility, CI Games SA is 1.62 times less risky than Skyline Investment. The stock trades about -0.25 of its potential returns per unit of risk. The Skyline Investment SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 153.00 in Skyline Investment SA on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Skyline Investment SA or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Games SA vs. Skyline Investment SA
Performance |
| Timeline |
| CI Games SA |
| Skyline Investment |
CI Games and Skyline Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Games and Skyline Investment
The main advantage of trading using opposite CI Games and Skyline Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Games position performs unexpectedly, Skyline Investment 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 Skyline Investment will offset losses from the drop in Skyline Investment's long position.The idea behind CI Games SA and Skyline Investment SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Skyline Investment vs. Quantum Software SA | Skyline Investment vs. Drago entertainment SA | Skyline Investment vs. Intersport Polska SA | Skyline Investment vs. GreenX Metals |
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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