Correlation Between Gladstone Investment and CI GAMES
Can any of the company-specific risk be diversified away by investing in both Gladstone 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 Gladstone 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 Gladstone Investment and CI GAMES SA, you can compare the effects of market volatilities on Gladstone 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 Gladstone Investment with a short position of CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and CI GAMES.
Diversification Opportunities for Gladstone Investment and CI GAMES
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gladstone and CI7 is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment 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 Gladstone 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 Gladstone Investment 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 Gladstone Investment i.e., Gladstone Investment and CI GAMES go up and down completely randomly.
Pair Corralation between Gladstone Investment and CI GAMES
Assuming the 90 days horizon Gladstone Investment is expected to generate 1.09 times less return on investment than CI GAMES. But when comparing it to its historical volatility, Gladstone Investment is 3.71 times less risky than CI GAMES. It trades about 0.06 of its potential returns per unit of risk. CI GAMES SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 49.00 in CI GAMES SA on December 4, 2024 and sell it today you would lose (12.00) from holding CI GAMES SA or give up 24.49% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Gladstone Investment vs. CI GAMES SA
Performance |
Timeline |
Gladstone Investment |
CI GAMES SA |
Gladstone Investment and CI GAMES Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gladstone Investment and CI GAMES
The main advantage of trading using opposite Gladstone Investment and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone 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's long position.Gladstone Investment vs. SCANSOURCE | Gladstone Investment vs. CHRYSALIS INVESTMENTS LTD | Gladstone Investment vs. Retail Estates NV | Gladstone Investment vs. Salesforce |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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