Correlation Between CI Games and Stalprodukt
Can any of the company-specific risk be diversified away by investing in both CI Games and Stalprodukt 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 Stalprodukt 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 Stalprodukt SA, you can compare the effects of market volatilities on CI Games and Stalprodukt 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 Stalprodukt. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Games and Stalprodukt.
Diversification Opportunities for CI Games and Stalprodukt
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CIG and Stalprodukt is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and Stalprodukt SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stalprodukt 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 Stalprodukt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stalprodukt SA has no effect on the direction of CI Games i.e., CI Games and Stalprodukt go up and down completely randomly.
Pair Corralation between CI Games and Stalprodukt
Assuming the 90 days trading horizon CI Games SA is expected to under-perform the Stalprodukt. In addition to that, CI Games is 1.25 times more volatile than Stalprodukt SA. It trades about -0.07 of its total potential returns per unit of risk. Stalprodukt SA is currently generating about 0.02 per unit of volatility. If you would invest 21,850 in Stalprodukt SA on September 3, 2024 and sell it today you would earn a total of 450.00 from holding Stalprodukt SA or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Games SA vs. Stalprodukt SA
Performance |
| Timeline |
| CI Games SA |
| Stalprodukt SA |
CI Games and Stalprodukt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Games and Stalprodukt
The main advantage of trading using opposite CI Games and Stalprodukt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Games position performs unexpectedly, Stalprodukt 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 Stalprodukt will offset losses from the drop in Stalprodukt's long position.| CI Games vs. Medicalg | CI Games vs. Mercator Medical SA | CI Games vs. Creotech Instruments SA | CI Games vs. Echo Investment SA |
| Stalprodukt vs. Mlk Foods Public | Stalprodukt vs. CI Games SA | Stalprodukt vs. Varsav Game Studios | Stalprodukt vs. TEN SQUARE GAMES |
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 Stocks Directory module to find actively traded stocks across global markets.
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