Correlation Between CI Games and TLT
Can any of the company-specific risk be diversified away by investing in both CI Games and TLT 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 TLT 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 TLT, you can compare the effects of market volatilities on CI Games and TLT 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 TLT. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Games and TLT.
Diversification Opportunities for CI Games and TLT
Very good diversification
The 3 months correlation between CIG and TLT is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and TLT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TLT 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 TLT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TLT has no effect on the direction of CI Games i.e., CI Games and TLT go up and down completely randomly.
Pair Corralation between CI Games and TLT
Assuming the 90 days trading horizon CI Games SA is expected to generate 0.11 times more return on investment than TLT. However, CI Games SA is 9.41 times less risky than TLT. It trades about -0.58 of its potential returns per unit of risk. TLT is currently generating about -0.14 per unit of risk. If you would invest 158.00 in CI Games SA on August 26, 2024 and sell it today you would lose (14.00) from holding CI Games SA or give up 8.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
CI Games SA vs. TLT
Performance |
| Timeline |
| CI Games SA |
| TLT |
CI Games and TLT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Games and TLT
The main advantage of trading using opposite CI Games and TLT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Games position performs unexpectedly, TLT 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 TLT will offset losses from the drop in TLT's long position.| CI Games vs. CD PROJEKT SA | CI Games vs. 11 bit studios | CI Games vs. Movie Games SA | CI Games vs. Ultimate Games 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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