Correlation Between PARKEN Sport and CI GAMES
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport 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 PARKEN Sport and CI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PARKEN Sport Entertainment and CI GAMES SA, you can compare the effects of market volatilities on PARKEN Sport 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 PARKEN Sport with a short position of CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and CI GAMES.
Diversification Opportunities for PARKEN Sport and CI GAMES
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between PARKEN and CI7 is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment 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 PARKEN Sport 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 PARKEN Sport Entertainment 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 PARKEN Sport i.e., PARKEN Sport and CI GAMES go up and down completely randomly.
Pair Corralation between PARKEN Sport and CI GAMES
Assuming the 90 days horizon PARKEN Sport Entertainment is expected to generate 0.65 times more return on investment than CI GAMES. However, PARKEN Sport Entertainment is 1.54 times less risky than CI GAMES. It trades about 0.08 of its potential returns per unit of risk. CI GAMES SA is currently generating about -0.03 per unit of risk. If you would invest 1,630 in PARKEN Sport Entertainment on September 12, 2024 and sell it today you would earn a total of 55.00 from holding PARKEN Sport Entertainment or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. CI GAMES SA
Performance |
| Timeline |
| PARKEN Sport Enterta |
| CI GAMES SA |
PARKEN Sport and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and CI GAMES
The main advantage of trading using opposite PARKEN Sport and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport 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.| PARKEN Sport vs. The Walt Disney | PARKEN Sport vs. Charter Communications | PARKEN Sport vs. Warner Music Group | PARKEN Sport vs. Superior Plus Corp |
| CI GAMES vs. Haverty Furniture Companies | CI GAMES vs. ETFS Coffee ETC | CI GAMES vs. VARIOUS EATERIES LS | CI GAMES vs. North American Construction |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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