Correlation Between Saule Technologies and CI Games
Can any of the company-specific risk be diversified away by investing in both Saule Technologies 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 Saule Technologies and CI Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saule Technologies SA and CI Games SA, you can compare the effects of market volatilities on Saule Technologies 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 Saule Technologies with a short position of CI Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and CI Games.
Diversification Opportunities for Saule Technologies and CI Games
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saule and CIG is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies 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 Saule Technologies 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 Saule Technologies 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 Saule Technologies i.e., Saule Technologies and CI Games go up and down completely randomly.
Pair Corralation between Saule Technologies and CI Games
Assuming the 90 days trading horizon Saule Technologies SA is expected to under-perform the CI Games. But the stock apears to be less risky and, when comparing its historical volatility, Saule Technologies SA is 1.24 times less risky than CI Games. The stock trades about -0.07 of its potential returns per unit of risk. The CI Games SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 274.00 in CI Games SA on August 23, 2024 and sell it today you would lose (131.00) from holding CI Games SA or give up 47.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saule Technologies SA vs. CI Games SA
Performance |
| Timeline |
| Saule Technologies |
| CI Games SA |
Saule Technologies and CI Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and CI Games
The main advantage of trading using opposite Saule Technologies and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies 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.| Saule Technologies vs. Clean Carbon Energy | Saule Technologies vs. ADX | Saule Technologies vs. Agroliga Group PLC | Saule Technologies vs. Vee SA |
| CI Games vs. Saule Technologies SA | CI Games vs. Datawalk SA | CI Games vs. Quantum Software SA | CI Games vs. Cloud Technologies SA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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