Correlation Between CI Games and Santander Bank
Can any of the company-specific risk be diversified away by investing in both CI Games and Santander Bank 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 Santander Bank 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 Santander Bank Polska, you can compare the effects of market volatilities on CI Games and Santander Bank 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 Santander Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Games and Santander Bank.
Diversification Opportunities for CI Games and Santander Bank
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between CIG and Santander is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and Santander Bank Polska in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santander Bank Polska 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 Santander Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santander Bank Polska has no effect on the direction of CI Games i.e., CI Games and Santander Bank go up and down completely randomly.
Pair Corralation between CI Games and Santander Bank
Assuming the 90 days trading horizon CI Games SA is expected to generate 2.17 times more return on investment than Santander Bank. However, CI Games is 2.17 times more volatile than Santander Bank Polska. It trades about 0.68 of its potential returns per unit of risk. Santander Bank Polska is currently generating about 0.22 per unit of risk. If you would invest 126.00 in CI Games SA on October 24, 2024 and sell it today you would earn a total of 43.00 from holding CI Games SA or generate 34.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Games SA vs. Santander Bank Polska
Performance |
| Timeline |
| CI Games SA |
| Santander Bank Polska |
CI Games and Santander Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Games and Santander Bank
The main advantage of trading using opposite CI Games and Santander Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Games position performs unexpectedly, Santander Bank 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 Santander Bank will offset losses from the drop in Santander Bank's long position.| CI Games vs. GreenX Metals | CI Games vs. Quantum Software SA | CI Games vs. Medicofarma Biotech SA | CI Games vs. SOFTWARE MANSION SPOLKA |
| Santander Bank vs. CI Games SA | Santander Bank vs. Mlk Foods Public | Santander Bank vs. Creativeforge Games SA | Santander Bank vs. SOFTWARE MANSION SPOLKA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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