Correlation Between CD Projekt and Mixi
Can any of the company-specific risk be diversified away by investing in both CD Projekt and Mixi 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 Mixi 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 Mixi Inc, you can compare the effects of market volatilities on CD Projekt and Mixi 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 Mixi. Check out your portfolio center. Please also check ongoing floating volatility patterns of CD Projekt and Mixi.
Diversification Opportunities for CD Projekt and Mixi
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between OTGLY and Mixi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding CD Projekt SA and Mixi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mixi Inc 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 Mixi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mixi Inc has no effect on the direction of CD Projekt i.e., CD Projekt and Mixi go up and down completely randomly.
Pair Corralation between CD Projekt and Mixi
Assuming the 90 days horizon CD Projekt SA is expected to generate 1.76 times more return on investment than Mixi. However, CD Projekt is 1.76 times more volatile than Mixi Inc. It trades about 0.04 of its potential returns per unit of risk. Mixi Inc is currently generating about -0.01 per unit of risk. If you would invest 736.00 in CD Projekt SA on August 28, 2024 and sell it today you would earn a total of 265.00 from holding CD Projekt SA or generate 36.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 60.08% |
| Values | Daily Returns |
CD Projekt SA vs. Mixi Inc
Performance |
| Timeline |
| CD Projekt SA |
| Mixi Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CD Projekt and Mixi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CD Projekt and Mixi
The main advantage of trading using opposite CD Projekt and Mixi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CD Projekt position performs unexpectedly, Mixi 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 Mixi will offset losses from the drop in Mixi'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 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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