Correlation Between Cloud Technologies and CI Games
Can any of the company-specific risk be diversified away by investing in both Cloud Technologies and CI Games 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 Cloud Technologies and CI Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cloud Technologies SA and CI Games SA, you can compare the effects of market volatilities on Cloud Technologies and CI Games 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 Cloud Technologies with a short position of CI Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Technologies and CI Games.
Diversification Opportunities for Cloud Technologies and CI Games
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cloud and CIG is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Technologies SA and CI Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Games SA and Cloud Technologies 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 Cloud Technologies SA are associated (or correlated) with CI Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Games SA has no effect on the direction of Cloud Technologies i.e., Cloud Technologies and CI Games go up and down completely randomly.
Pair Corralation between Cloud Technologies and CI Games
Assuming the 90 days trading horizon Cloud Technologies SA is expected to generate 3.58 times more return on investment than CI Games. However, Cloud Technologies is 3.58 times more volatile than CI Games SA. It trades about -0.06 of its potential returns per unit of risk. CI Games SA is currently generating about -0.69 per unit of risk. If you would invest 6,760 in Cloud Technologies SA on August 23, 2024 and sell it today you would lose (280.00) from holding Cloud Technologies SA or give up 4.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloud Technologies SA vs. CI Games SA
Performance |
| Timeline |
| Cloud Technologies |
| CI Games SA |
Cloud Technologies and CI Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Technologies and CI Games
The main advantage of trading using opposite Cloud Technologies and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Technologies position performs unexpectedly, CI Games 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 CI Games will offset losses from the drop in CI Games' long position.| Cloud Technologies vs. Pyramid Games SA | Cloud Technologies vs. MCI Management SA | Cloud Technologies vs. Monnari Trade SA | Cloud Technologies vs. Kool2play SA |
| CI Games vs. Saule Technologies SA | CI Games vs. Datawalk SA | CI Games vs. Quantum Software SA | CI Games vs. Cloud Technologies 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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