Correlation Between PMPG Polskie and CI Games

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both PMPG Polskie and CI Games 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 PMPG Polskie and CI Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PMPG Polskie Media and CI Games SA, you can compare the effects of market volatilities on PMPG Polskie and CI Games 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 PMPG Polskie with a short position of CI Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of PMPG Polskie and CI Games.

Diversification Opportunities for PMPG Polskie and CI Games

0.6
  Correlation Coefficient

Poor diversification

The 3 months correlation between PMPG and CIG is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding PMPG Polskie Media and CI Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Games SA and PMPG Polskie 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 PMPG Polskie Media are associated (or correlated) with CI Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Games SA has no effect on the direction of PMPG Polskie i.e., PMPG Polskie and CI Games go up and down completely randomly.

Pair Corralation between PMPG Polskie and CI Games

Assuming the 90 days trading horizon PMPG Polskie Media is expected to under-perform the CI Games. In addition to that, PMPG Polskie is 1.84 times more volatile than CI Games SA. It trades about -0.29 of its total potential returns per unit of risk. CI Games SA is currently generating about -0.1 per unit of volatility. If you would invest  162.00  in CI Games SA on August 30, 2024 and sell it today you would lose (14.00) from holding CI Games SA or give up 8.64% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy97.62%
ValuesDaily Returns

PMPG Polskie Media  vs.  CI Games SA

 Performance 
       Timeline  
PMPG Polskie Media 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days PMPG Polskie Media has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
CI Games SA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CI Games SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

PMPG Polskie and CI Games Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PMPG Polskie and CI Games

The main advantage of trading using opposite PMPG Polskie and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PMPG Polskie position performs unexpectedly, CI Games 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 CI Games will offset losses from the drop in CI Games' long position.
The idea behind PMPG Polskie Media and CI Games 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.
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

Other Complementary Tools

Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals