Correlation Between Creotech Instruments and Movie Games
Can any of the company-specific risk be diversified away by investing in both Creotech Instruments and Movie 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 Creotech Instruments and Movie Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creotech Instruments SA and Movie Games SA, you can compare the effects of market volatilities on Creotech Instruments and Movie 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 Creotech Instruments with a short position of Movie Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creotech Instruments and Movie Games.
Diversification Opportunities for Creotech Instruments and Movie Games
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Creotech and Movie is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Creotech Instruments SA and Movie Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movie Games SA and Creotech Instruments 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 Creotech Instruments SA are associated (or correlated) with Movie Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movie Games SA has no effect on the direction of Creotech Instruments i.e., Creotech Instruments and Movie Games go up and down completely randomly.
Pair Corralation between Creotech Instruments and Movie Games
Assuming the 90 days trading horizon Creotech Instruments SA is expected to generate 1.04 times more return on investment than Movie Games. However, Creotech Instruments is 1.04 times more volatile than Movie Games SA. It trades about -0.03 of its potential returns per unit of risk. Movie Games SA is currently generating about -0.13 per unit of risk. If you would invest 18,300 in Creotech Instruments SA on August 30, 2024 and sell it today you would lose (3,700) from holding Creotech Instruments SA or give up 20.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creotech Instruments SA vs. Movie Games SA
Performance |
| Timeline |
| Creotech Instruments |
| Movie Games SA |
Creotech Instruments and Movie Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creotech Instruments and Movie Games
The main advantage of trading using opposite Creotech Instruments and Movie Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creotech Instruments position performs unexpectedly, Movie 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 Movie Games will offset losses from the drop in Movie Games' long position.| Creotech Instruments vs. Asseco Business Solutions | Creotech Instruments vs. Detalion Games SA | Creotech Instruments vs. CFI Holding SA | Creotech Instruments vs. HM Inwest SA |
| Movie Games vs. MCI Management SA | Movie Games vs. Bank Millennium SA | Movie Games vs. mBank SA | Movie Games vs. Centrum Finansowe Banku |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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