Correlation Between CI GAMES and Prosafe SE

Can any of the company-specific risk be diversified away by investing in both CI GAMES and Prosafe SE 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 CI GAMES and Prosafe SE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CI GAMES SA and Prosafe SE, you can compare the effects of market volatilities on CI GAMES and Prosafe SE 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 CI GAMES with a short position of Prosafe SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and Prosafe SE.

Diversification Opportunities for CI GAMES and Prosafe SE

0.18

Correlation Coefficient

CI GAMES  Prosafe SE

Average diversification

The 3 months correlation between CI7 and Prosafe is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and Prosafe SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosafe SE and CI GAMES 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 CI GAMES SA are associated (or correlated) with Prosafe SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosafe SE has no effect on the direction of CI GAMES i.e., CI GAMES and Prosafe SE go up and down completely randomly.

Pair Corralation between CI GAMES and Prosafe SE

Assuming the 90 days horizon CI GAMES SA is expected to generate 0.27 times more return on investment than Prosafe SE. However, CI GAMES SA is 3.64 times less risky than Prosafe SE. It trades about 0.28 of its potential returns per unit of risk. Prosafe SE is currently generating about -0.02 per unit of risk. If you would invest  33.00  in CI GAMES SA on December 4, 2024 and sell it today you would earn a total of  5.00  from holding CI GAMES SA or generate 15.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CI GAMES SA  vs.  Prosafe SE

CI GAMES SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CI GAMES SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CI GAMES reported solid returns over the last few months and may actually be approaching a breakup point.

Prosafe SE

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Prosafe SE are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Prosafe SE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CI GAMES and Prosafe SE

The main advantage of trading using opposite CI GAMES and Prosafe SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, Prosafe SE 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 Prosafe SE will offset losses from the drop in Prosafe SE's long position.

The idea behind CI GAMES SA and Prosafe SE 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.

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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 Stocks Directory module to find actively traded stocks across global markets.