Correlation Between TEN SQUARE and CI Games
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE 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 TEN SQUARE and CI Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEN SQUARE GAMES and CI Games SA, you can compare the effects of market volatilities on TEN SQUARE 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 TEN SQUARE with a short position of CI Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and CI Games.
Diversification Opportunities for TEN SQUARE and CI Games
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TEN and CIG is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES 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 TEN SQUARE 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 TEN SQUARE GAMES 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 TEN SQUARE i.e., TEN SQUARE and CI Games go up and down completely randomly.
Pair Corralation between TEN SQUARE and CI Games
Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to generate 2.36 times more return on investment than CI Games. However, TEN SQUARE is 2.36 times more volatile than CI Games SA. It trades about -0.1 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 8,360 in TEN SQUARE GAMES on August 28, 2024 and sell it today you would lose (450.00) from holding TEN SQUARE GAMES or give up 5.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. CI Games SA
Performance |
| Timeline |
| TEN SQUARE GAMES |
| CI Games SA |
TEN SQUARE and CI Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and CI Games
The main advantage of trading using opposite TEN SQUARE and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE 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 TEN SQUARE GAMES 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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