Correlation Between KENEDIX OFFICE and CI GAMES
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE 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 KENEDIX OFFICE and CI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENEDIX OFFICE INV and CI GAMES SA, you can compare the effects of market volatilities on KENEDIX OFFICE 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 KENEDIX OFFICE with a short position of CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and CI GAMES.
Diversification Opportunities for KENEDIX OFFICE and CI GAMES
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KENEDIX and CI7 is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV 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 KENEDIX OFFICE 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 KENEDIX OFFICE INV 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 KENEDIX OFFICE i.e., KENEDIX OFFICE and CI GAMES go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and CI GAMES
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 0.47 times more return on investment than CI GAMES. However, KENEDIX OFFICE INV is 2.13 times less risky than CI GAMES. It trades about 0.02 of its potential returns per unit of risk. CI GAMES SA is currently generating about -0.11 per unit of risk. If you would invest 88,000 in KENEDIX OFFICE INV on September 13, 2024 and sell it today you would earn a total of 500.00 from holding KENEDIX OFFICE INV or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. CI GAMES SA
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| CI GAMES SA |
KENEDIX OFFICE and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and CI GAMES
The main advantage of trading using opposite KENEDIX OFFICE and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE 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.| KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc |
| CI GAMES vs. NEXON Co | CI GAMES vs. Take Two Interactive Software | CI GAMES vs. Superior Plus Corp | CI GAMES vs. SIVERS SEMICONDUCTORS AB |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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