Correlation Between City Sports and I2 Enterprise
Can any of the company-specific risk be diversified away by investing in both City Sports and I2 Enterprise 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 City Sports and I2 Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City Sports and and I2 Enterprise Public, you can compare the effects of market volatilities on City Sports and I2 Enterprise 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 City Sports with a short position of I2 Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Sports and I2 Enterprise.
Diversification Opportunities for City Sports and I2 Enterprise
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between City and I2 Enterprise is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding City Sports and and I2 Enterprise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I2 Enterprise Public and City Sports 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 City Sports and are associated (or correlated) with I2 Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I2 Enterprise Public has no effect on the direction of City Sports i.e., City Sports and I2 Enterprise go up and down completely randomly.
Pair Corralation between City Sports and I2 Enterprise
Assuming the 90 days trading horizon City Sports and is expected to generate 16.13 times more return on investment than I2 Enterprise. However, City Sports is 16.13 times more volatile than I2 Enterprise Public. It trades about 0.04 of its potential returns per unit of risk. I2 Enterprise Public is currently generating about -0.04 per unit of risk. If you would invest 6,626 in City Sports and on October 13, 2024 and sell it today you would earn a total of 2,349 from holding City Sports and or generate 35.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 72.92% |
| Values | Daily Returns |
City Sports and vs. I2 Enterprise Public
Performance |
| Timeline |
| City Sports |
| I2 Enterprise Public |
City Sports and I2 Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Sports and I2 Enterprise
The main advantage of trading using opposite City Sports and I2 Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Sports position performs unexpectedly, I2 Enterprise 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 I2 Enterprise will offset losses from the drop in I2 Enterprise's long position.| City Sports vs. Chiangmai Frozen Foods | City Sports vs. Dynasty Ceramic Public | City Sports vs. Castle Peak Holdings | City Sports vs. CPL Group Public |
| I2 Enterprise vs. Bangkok Union Insurance | I2 Enterprise vs. Indara Insurance Public | I2 Enterprise vs. Nonthavej Hospital Public | I2 Enterprise vs. City Sports and |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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