Correlation Between Skyline Investment and CI Games
Can any of the company-specific risk be diversified away by investing in both Skyline Investment 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 Skyline Investment and CI Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skyline Investment SA and CI Games SA, you can compare the effects of market volatilities on Skyline Investment 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 Skyline Investment with a short position of CI Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skyline Investment and CI Games.
Diversification Opportunities for Skyline Investment and CI Games
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Skyline and CIG is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Skyline Investment SA 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 Skyline Investment 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 Skyline Investment SA 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 Skyline Investment i.e., Skyline Investment and CI Games go up and down completely randomly.
Pair Corralation between Skyline Investment and CI Games
Assuming the 90 days trading horizon Skyline Investment SA is expected to generate 1.62 times more return on investment than CI Games. However, Skyline Investment is 1.62 times more volatile than CI Games SA. It trades about 0.07 of its potential returns per unit of risk. CI Games SA is currently generating about -0.25 per unit of risk. If you would invest 153.00 in Skyline Investment SA on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Skyline Investment SA or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skyline Investment SA vs. CI Games SA
Performance |
| Timeline |
| Skyline Investment |
| CI Games SA |
Skyline Investment and CI Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skyline Investment and CI Games
The main advantage of trading using opposite Skyline Investment and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skyline Investment 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.| Skyline Investment vs. Quantum Software SA | Skyline Investment vs. Drago entertainment SA | Skyline Investment vs. Intersport Polska SA | Skyline Investment vs. GreenX Metals |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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