Correlation Between CD Projekt and I3 Interactive
Can any of the company-specific risk be diversified away by investing in both CD Projekt and I3 Interactive 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 I3 Interactive 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 i3 Interactive, you can compare the effects of market volatilities on CD Projekt and I3 Interactive 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 I3 Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of CD Projekt and I3 Interactive.
Diversification Opportunities for CD Projekt and I3 Interactive
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OTGLY and BLITF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CD Projekt SA and i3 Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i3 Interactive 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 I3 Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i3 Interactive has no effect on the direction of CD Projekt i.e., CD Projekt and I3 Interactive go up and down completely randomly.
Pair Corralation between CD Projekt and I3 Interactive
Assuming the 90 days horizon CD Projekt is expected to generate 25.29 times less return on investment than I3 Interactive. But when comparing it to its historical volatility, CD Projekt SA is 20.05 times less risky than I3 Interactive. It trades about 0.04 of its potential returns per unit of risk. i3 Interactive is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in i3 Interactive on August 31, 2024 and sell it today you would earn a total of 0.01 from holding i3 Interactive or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
CD Projekt SA vs. i3 Interactive
Performance |
| Timeline |
| CD Projekt SA |
| i3 Interactive |
CD Projekt and I3 Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CD Projekt and I3 Interactive
The main advantage of trading using opposite CD Projekt and I3 Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CD Projekt position performs unexpectedly, I3 Interactive 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 I3 Interactive will offset losses from the drop in I3 Interactive's long position.| CD Projekt vs. Square Enix Holdings | CD Projekt vs. Capcom Co | CD Projekt vs. Sega Sammy Holdings | CD Projekt vs. Square Enix Holdings |
| I3 Interactive vs. CD Projekt SA | I3 Interactive vs. Sega Sammy Holdings | I3 Interactive vs. Playtika Holding Corp | I3 Interactive 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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