Correlation Between TSOGO SUN and CI GAMES
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN 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 TSOGO SUN and CI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSOGO SUN GAMING and CI GAMES SA, you can compare the effects of market volatilities on TSOGO SUN 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 TSOGO SUN with a short position of CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and CI GAMES.
Diversification Opportunities for TSOGO SUN and CI GAMES
Very weak diversification
The 3 months correlation between TSOGO and CI7 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING 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 TSOGO SUN 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 TSOGO SUN GAMING 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 TSOGO SUN i.e., TSOGO SUN and CI GAMES go up and down completely randomly.
Pair Corralation between TSOGO SUN and CI GAMES
Assuming the 90 days horizon TSOGO SUN GAMING is expected to generate 0.41 times more return on investment than CI GAMES. However, TSOGO SUN GAMING is 2.45 times less risky than CI GAMES. It trades about -0.01 of its potential returns per unit of risk. CI GAMES SA is currently generating about -0.01 per unit of risk. If you would invest 60.00 in TSOGO SUN GAMING on September 12, 2024 and sell it today you would lose (5.00) from holding TSOGO SUN GAMING or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. CI GAMES SA
Performance |
| Timeline |
| TSOGO SUN GAMING |
| CI GAMES SA |
TSOGO SUN and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and CI GAMES
The main advantage of trading using opposite TSOGO SUN and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN 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.| TSOGO SUN vs. Sands China | TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB | TSOGO SUN vs. Norsk Hydro ASA |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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