Correlation Between Computer and CI GAMES
Can any of the company-specific risk be diversified away by investing in both Computer 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 Computer and CI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer And Technologies and CI GAMES SA, you can compare the effects of market volatilities on Computer 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 Computer with a short position of CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer and CI GAMES.
Diversification Opportunities for Computer and CI GAMES
Poor diversification
The 3 months correlation between Computer and CI7 is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Computer And Technologies 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 Computer 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 Computer And Technologies 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 Computer i.e., Computer and CI GAMES go up and down completely randomly.
Pair Corralation between Computer and CI GAMES
Assuming the 90 days horizon Computer And Technologies is expected to under-perform the CI GAMES. But the stock apears to be less risky and, when comparing its historical volatility, Computer And Technologies is 1.96 times less risky than CI GAMES. The stock trades about -0.07 of its potential returns per unit of risk. The CI GAMES SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 34.00 in CI GAMES SA on September 12, 2024 and sell it today you would lose (2.00) from holding CI GAMES SA or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Computer And Technologies vs. CI GAMES SA
Performance |
| Timeline |
| Computer And Technologies |
| CI GAMES SA |
Computer and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer and CI GAMES
The main advantage of trading using opposite Computer and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer 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's long position.| Computer vs. Cognizant Technology Solutions | Computer vs. Superior Plus Corp | Computer vs. SIVERS SEMICONDUCTORS AB | Computer vs. Norsk Hydro ASA |
| CI GAMES vs. NEXON Co | CI GAMES vs. Take Two Interactive Software | CI GAMES vs. Superior Plus Corp | CI GAMES vs. SIVERS SEMICONDUCTORS AB |
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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