Correlation Between CD Projekt and CD Projekt
Can any of the company-specific risk be diversified away by investing in both CD Projekt 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 CD Projekt and CD Projekt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CD Projekt SA and CD Projekt SA, you can compare the effects of market volatilities on CD Projekt 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 CD Projekt with a short position of CD Projekt. Check out your portfolio center. Please also check ongoing floating volatility patterns of CD Projekt and CD Projekt.
Diversification Opportunities for CD Projekt and CD Projekt
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OTGLF and OTGLY is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding CD Projekt SA 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 CD Projekt 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 CD Projekt SA 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 CD Projekt i.e., CD Projekt and CD Projekt go up and down completely randomly.
Pair Corralation between CD Projekt and CD Projekt
Assuming the 90 days horizon CD Projekt is expected to generate 1.1 times less return on investment than CD Projekt. In addition to that, CD Projekt is 1.27 times more volatile than CD Projekt SA. It trades about 0.1 of its total potential returns per unit of risk. CD Projekt SA is currently generating about 0.13 per unit of volatility. If you would invest 649.00 in CD Projekt SA on October 22, 2024 and sell it today you would earn a total of 653.00 from holding CD Projekt SA or generate 100.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
CD Projekt SA vs. CD Projekt SA
Performance |
| Timeline |
| CD Projekt SA |
| CD Projekt SA |
CD Projekt and CD Projekt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CD Projekt and CD Projekt
The main advantage of trading using opposite CD Projekt and CD Projekt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CD Projekt 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.| CD Projekt vs. Square Enix Holdings | CD Projekt vs. Sega Sammy Holdings | CD Projekt vs. Capcom Co Ltd | CD Projekt vs. Embracer Group AB |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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