Correlation Between X Trade and CI Games
Can any of the company-specific risk be diversified away by investing in both X Trade 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 X Trade and CI Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X Trade Brokers and CI Games SA, you can compare the effects of market volatilities on X Trade 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 X Trade with a short position of CI Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Trade and CI Games.
Diversification Opportunities for X Trade and CI Games
Good diversification
The 3 months correlation between XTB and CIG is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding X Trade Brokers 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 X Trade 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 X Trade Brokers 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 X Trade i.e., X Trade and CI Games go up and down completely randomly.
Pair Corralation between X Trade and CI Games
Assuming the 90 days trading horizon X Trade is expected to generate 3.34 times less return on investment than CI Games. But when comparing it to its historical volatility, X Trade Brokers is 1.19 times less risky than CI Games. It trades about 0.2 of its potential returns per unit of risk. CI Games SA is currently generating about 0.57 of returns per unit of risk over similar time horizon. If you would invest 130.00 in CI Games SA on October 26, 2024 and sell it today you would earn a total of 38.00 from holding CI Games SA or generate 29.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Trade Brokers vs. CI Games SA
Performance |
| Timeline |
| X Trade Brokers |
| CI Games SA |
X Trade and CI Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Trade and CI Games
The main advantage of trading using opposite X Trade and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Trade 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.| X Trade vs. Marie Brizard Wine | X Trade vs. Echo Investment SA | X Trade vs. Mlk Foods Public | X Trade vs. New Tech Venture |
| CI Games vs. BNP Paribas Bank | CI Games vs. Quantum Software SA | CI Games vs. Road Studio SA | CI Games vs. Medicofarma Biotech 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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