Correlation Between Mixi and CD Projekt
Can any of the company-specific risk be diversified away by investing in both Mixi and CD Projekt 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 Mixi and CD Projekt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mixi Inc and CD Projekt SA, you can compare the effects of market volatilities on Mixi and CD Projekt 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 Mixi with a short position of CD Projekt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mixi and CD Projekt.
Diversification Opportunities for Mixi and CD Projekt
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mixi and OTGLY is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Mixi Inc and CD Projekt SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CD Projekt SA and Mixi 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 Mixi Inc are associated (or correlated) with CD Projekt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CD Projekt SA has no effect on the direction of Mixi i.e., Mixi and CD Projekt go up and down completely randomly.
Pair Corralation between Mixi and CD Projekt
If you would invest 991.00 in CD Projekt SA on August 28, 2024 and sell it today you would earn a total of 46.00 from holding CD Projekt SA or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Mixi Inc vs. CD Projekt SA
Performance |
| Timeline |
| Mixi Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CD Projekt SA |
Mixi and CD Projekt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mixi and CD Projekt
The main advantage of trading using opposite Mixi and CD Projekt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mixi position performs unexpectedly, CD Projekt 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 CD Projekt will offset losses from the drop in CD Projekt's long position.The idea behind Mixi Inc and CD Projekt SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CD Projekt vs. Square Enix Holdings | CD Projekt vs. Capcom Co | CD Projekt vs. Sega Sammy Holdings | CD Projekt vs. Square Enix 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |