Correlation Between Comp SA and Creativeforge Games
Can any of the company-specific risk be diversified away by investing in both Comp SA and Creativeforge 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 Comp SA and Creativeforge Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comp SA and Creativeforge Games SA, you can compare the effects of market volatilities on Comp SA and Creativeforge 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 Comp SA with a short position of Creativeforge Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comp SA and Creativeforge Games.
Diversification Opportunities for Comp SA and Creativeforge Games
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Comp and Creativeforge is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Comp SA and Creativeforge Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creativeforge Games and Comp SA 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 Comp SA are associated (or correlated) with Creativeforge Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creativeforge Games has no effect on the direction of Comp SA i.e., Comp SA and Creativeforge Games go up and down completely randomly.
Pair Corralation between Comp SA and Creativeforge Games
Assuming the 90 days trading horizon Comp SA is expected to generate 0.45 times more return on investment than Creativeforge Games. However, Comp SA is 2.22 times less risky than Creativeforge Games. It trades about 0.12 of its potential returns per unit of risk. Creativeforge Games SA is currently generating about -0.09 per unit of risk. If you would invest 5,800 in Comp SA on August 31, 2024 and sell it today you would earn a total of 6,050 from holding Comp SA or generate 104.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Comp SA vs. Creativeforge Games SA
Performance |
| Timeline |
| Comp SA |
| Creativeforge Games |
Comp SA and Creativeforge Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comp SA and Creativeforge Games
The main advantage of trading using opposite Comp SA and Creativeforge Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comp SA position performs unexpectedly, Creativeforge 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 Creativeforge Games will offset losses from the drop in Creativeforge Games' long position.| Comp SA vs. Asseco Business Solutions | Comp SA vs. Detalion Games SA | Comp SA vs. Asseco South Eastern | Comp SA vs. CFI Holding SA |
| Creativeforge Games vs. ECC Games SA | Creativeforge Games vs. Asseco Business Solutions | Creativeforge Games vs. Detalion Games SA | Creativeforge Games vs. Asseco South Eastern |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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