Correlation Between Ice Code and Ultimate Games
Can any of the company-specific risk be diversified away by investing in both Ice Code and Ultimate 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 Ice Code and Ultimate Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ice Code Games and Ultimate Games SA, you can compare the effects of market volatilities on Ice Code and Ultimate 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 Ice Code with a short position of Ultimate Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ice Code and Ultimate Games.
Diversification Opportunities for Ice Code and Ultimate Games
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ice and Ultimate is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ice Code Games and Ultimate Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultimate Games SA and Ice Code 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 Ice Code Games are associated (or correlated) with Ultimate Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultimate Games SA has no effect on the direction of Ice Code i.e., Ice Code and Ultimate Games go up and down completely randomly.
Pair Corralation between Ice Code and Ultimate Games
Assuming the 90 days trading horizon Ice Code Games is expected to under-perform the Ultimate Games. In addition to that, Ice Code is 2.79 times more volatile than Ultimate Games SA. It trades about -0.15 of its total potential returns per unit of risk. Ultimate Games SA is currently generating about -0.18 per unit of volatility. If you would invest 1,095 in Ultimate Games SA on August 26, 2024 and sell it today you would lose (211.00) from holding Ultimate Games SA or give up 19.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 79.69% |
| Values | Daily Returns |
Ice Code Games vs. Ultimate Games SA
Performance |
| Timeline |
| Ice Code Games |
| Ultimate Games SA |
Ice Code and Ultimate Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ice Code and Ultimate Games
The main advantage of trading using opposite Ice Code and Ultimate Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ice Code position performs unexpectedly, Ultimate 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 Ultimate Games will offset losses from the drop in Ultimate Games' long position.| Ice Code vs. NGG | Ice Code vs. Asseco Business Solutions | Ice Code vs. Detalion Games SA | Ice Code vs. Asseco South Eastern |
| Ultimate Games vs. CD PROJEKT SA | Ultimate Games vs. 11 bit studios | Ultimate Games vs. Movie Games SA | Ultimate Games vs. Gaming Factory 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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