Correlation Between Pyramid Games and CFI Holding
Can any of the company-specific risk be diversified away by investing in both Pyramid Games and CFI Holding 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 Pyramid Games and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pyramid Games SA and CFI Holding SA, you can compare the effects of market volatilities on Pyramid Games and CFI Holding 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 Pyramid Games with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pyramid Games and CFI Holding.
Diversification Opportunities for Pyramid Games and CFI Holding
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pyramid and CFI is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Pyramid Games SA and CFI Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CFI Holding SA and Pyramid Games 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 Pyramid Games SA are associated (or correlated) with CFI Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CFI Holding SA has no effect on the direction of Pyramid Games i.e., Pyramid Games and CFI Holding go up and down completely randomly.
Pair Corralation between Pyramid Games and CFI Holding
Assuming the 90 days trading horizon Pyramid Games SA is expected to under-perform the CFI Holding. In addition to that, Pyramid Games is 1.07 times more volatile than CFI Holding SA. It trades about -0.06 of its total potential returns per unit of risk. CFI Holding SA is currently generating about -0.04 per unit of volatility. If you would invest 22.00 in CFI Holding SA on September 2, 2024 and sell it today you would lose (5.00) from holding CFI Holding SA or give up 22.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 92.13% |
| Values | Daily Returns |
Pyramid Games SA vs. CFI Holding SA
Performance |
| Timeline |
| Pyramid Games SA |
| CFI Holding SA |
Pyramid Games and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pyramid Games and CFI Holding
The main advantage of trading using opposite Pyramid Games and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyramid Games position performs unexpectedly, CFI Holding 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 CFI Holding will offset losses from the drop in CFI Holding's long position.| Pyramid Games vs. ECC Games SA | Pyramid Games vs. Asseco Business Solutions | Pyramid Games vs. Detalion Games SA | Pyramid Games vs. Asseco South Eastern |
| CFI Holding vs. CI Games SA | CFI Holding vs. SOFTWARE MANSION SPOLKA | CFI Holding vs. BNP Paribas Bank | CFI Holding vs. Varsav Game Studios |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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