Correlation Between GAMESTOP and CI GAMES
Can any of the company-specific risk be diversified away by investing in both GAMESTOP 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 GAMESTOP and CI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMESTOP and CI GAMES SA, you can compare the effects of market volatilities on GAMESTOP 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 GAMESTOP with a short position of CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMESTOP and CI GAMES.
Diversification Opportunities for GAMESTOP and CI GAMES
Excellent diversification
The 3 months correlation between GAMESTOP and CI7 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding GAMESTOP 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 GAMESTOP 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 GAMESTOP 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 GAMESTOP i.e., GAMESTOP and CI GAMES go up and down completely randomly.
Pair Corralation between GAMESTOP and CI GAMES
Assuming the 90 days trading horizon GAMESTOP is expected to generate 1.45 times more return on investment than CI GAMES. However, GAMESTOP is 1.45 times more volatile than CI GAMES SA. It trades about 0.04 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 2,152 in GAMESTOP on September 2, 2024 and sell it today you would earn a total of 550.00 from holding GAMESTOP or generate 25.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMESTOP vs. CI GAMES SA
Performance |
| Timeline |
| GAMESTOP |
| CI GAMES SA |
GAMESTOP and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMESTOP and CI GAMES
The main advantage of trading using opposite GAMESTOP and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMESTOP 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.| GAMESTOP vs. SIVERS SEMICONDUCTORS AB | GAMESTOP vs. Darden Restaurants | GAMESTOP vs. Reliance Steel Aluminum | GAMESTOP vs. Q2M Managementberatung AG |
| CI GAMES vs. Nintendo Co | CI GAMES vs. Sea Limited | CI GAMES vs. Superior Plus Corp | CI GAMES vs. NMI Holdings |
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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