Correlation Between Echo Investment and CI Games
Can any of the company-specific risk be diversified away by investing in both Echo Investment 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 Echo Investment and CI Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Echo Investment SA and CI Games SA, you can compare the effects of market volatilities on Echo Investment 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 Echo Investment with a short position of CI Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Echo Investment and CI Games.
Diversification Opportunities for Echo Investment and CI Games
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Echo and CIG is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Echo Investment SA 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 Echo Investment 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 Echo Investment SA 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 Echo Investment i.e., Echo Investment and CI Games go up and down completely randomly.
Pair Corralation between Echo Investment and CI Games
Assuming the 90 days trading horizon Echo Investment SA is expected to generate 1.53 times more return on investment than CI Games. However, Echo Investment is 1.53 times more volatile than CI Games SA. It trades about -0.08 of its potential returns per unit of risk. CI Games SA is currently generating about -0.24 per unit of risk. If you would invest 458.00 in Echo Investment SA on August 29, 2024 and sell it today you would lose (13.00) from holding Echo Investment SA or give up 2.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Echo Investment SA vs. CI Games SA
Performance |
| Timeline |
| Echo Investment SA |
| CI Games SA |
Echo Investment and CI Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Echo Investment and CI Games
The main advantage of trading using opposite Echo Investment and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Echo Investment 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' long position.| Echo Investment vs. Asseco Business Solutions | Echo Investment vs. Detalion Games SA | Echo Investment vs. CFI Holding SA | Echo Investment vs. HM Inwest SA |
| CI Games vs. CD PROJEKT SA | CI Games vs. PLAYWAY SA | CI Games vs. 11 bit studios | CI Games vs. Movie Games SA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |