Correlation Between Dassault Systmes and CONTAGIOUS GAMING
Can any of the company-specific risk be diversified away by investing in both Dassault Systmes and CONTAGIOUS GAMING 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 Dassault Systmes and CONTAGIOUS GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dassault Systmes SE and CONTAGIOUS GAMING INC, you can compare the effects of market volatilities on Dassault Systmes and CONTAGIOUS GAMING 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 Dassault Systmes with a short position of CONTAGIOUS GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dassault Systmes and CONTAGIOUS GAMING.
Diversification Opportunities for Dassault Systmes and CONTAGIOUS GAMING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dassault and CONTAGIOUS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dassault Systmes SE and CONTAGIOUS GAMING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONTAGIOUS GAMING INC and Dassault Systmes 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 Dassault Systmes SE are associated (or correlated) with CONTAGIOUS GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONTAGIOUS GAMING INC has no effect on the direction of Dassault Systmes i.e., Dassault Systmes and CONTAGIOUS GAMING go up and down completely randomly.
Pair Corralation between Dassault Systmes and CONTAGIOUS GAMING
If you would invest 3,320 in Dassault Systmes SE on November 3, 2024 and sell it today you would earn a total of 420.00 from holding Dassault Systmes SE or generate 12.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Dassault Systmes SE vs. CONTAGIOUS GAMING INC
Performance |
| Timeline |
| Dassault Systmes |
| CONTAGIOUS GAMING INC |
Dassault Systmes and CONTAGIOUS GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dassault Systmes and CONTAGIOUS GAMING
The main advantage of trading using opposite Dassault Systmes and CONTAGIOUS GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dassault Systmes position performs unexpectedly, CONTAGIOUS GAMING 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 CONTAGIOUS GAMING will offset losses from the drop in CONTAGIOUS GAMING's long position.| Dassault Systmes vs. HUTCHISON TELECOMM | Dassault Systmes vs. Singapore Telecommunications Limited | Dassault Systmes vs. TELECOM ITALIA | Dassault Systmes vs. Cairo Communication SpA |
| CONTAGIOUS GAMING vs. Nintendo Co | CONTAGIOUS GAMING vs. Nintendo Co | CONTAGIOUS GAMING vs. Sea Limited | CONTAGIOUS GAMING vs. Electronic Arts |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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