Correlation Between SBM OFFSHORE and CI GAMES
Can any of the company-specific risk be diversified away by investing in both SBM OFFSHORE 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 SBM OFFSHORE and CI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBM OFFSHORE and CI GAMES SA, you can compare the effects of market volatilities on SBM OFFSHORE 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 SBM OFFSHORE with a short position of CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM OFFSHORE and CI GAMES.
Diversification Opportunities for SBM OFFSHORE and CI GAMES
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SBM and CI7 is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SBM OFFSHORE 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 SBM OFFSHORE 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 SBM OFFSHORE 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 SBM OFFSHORE i.e., SBM OFFSHORE and CI GAMES go up and down completely randomly.
Pair Corralation between SBM OFFSHORE and CI GAMES
Assuming the 90 days trading horizon SBM OFFSHORE is expected to generate 0.59 times more return on investment than CI GAMES. However, SBM OFFSHORE is 1.7 times less risky than CI GAMES. It trades about 0.17 of its potential returns per unit of risk. CI GAMES SA is currently generating about -0.03 per unit of risk. If you would invest 1,691 in SBM OFFSHORE on August 27, 2024 and sell it today you would earn a total of 109.00 from holding SBM OFFSHORE or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBM OFFSHORE vs. CI GAMES SA
Performance |
| Timeline |
| SBM OFFSHORE |
| CI GAMES SA |
SBM OFFSHORE and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM OFFSHORE and CI GAMES
The main advantage of trading using opposite SBM OFFSHORE and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM OFFSHORE 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.| SBM OFFSHORE vs. CarsalesCom | SBM OFFSHORE vs. Tyson Foods | SBM OFFSHORE vs. Performance Food Group | SBM OFFSHORE vs. YATRA ONLINE DL 0001 |
| CI GAMES vs. COMBA TELECOM SYST | CI GAMES vs. InPlay Oil Corp | CI GAMES vs. SBA Communications Corp | CI GAMES vs. Iridium Communications |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |