Correlation Between CI GAMES and WisdomTree Investments

Can any of the company-specific risk be diversified away by investing in both CI GAMES and WisdomTree Investments 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 WisdomTree Investments 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 WisdomTree Investments, you can compare the effects of market volatilities on CI GAMES and WisdomTree Investments 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 WisdomTree Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and WisdomTree Investments.

Diversification Opportunities for CI GAMES and WisdomTree Investments

-0.3

Correlation Coefficient

CI GAMES  WisdomTree Investments

Very good diversification

The 3 months correlation between CI7 and WisdomTree is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and WisdomTree Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Investments 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 WisdomTree Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Investments has no effect on the direction of CI GAMES i.e., CI GAMES and WisdomTree Investments go up and down completely randomly.

Pair Corralation between CI GAMES and WisdomTree Investments

Assuming the 90 days horizon CI GAMES SA is expected to generate 6.07 times more return on investment than WisdomTree Investments. However, CI GAMES is 6.07 times more volatile than WisdomTree Investments. It trades about 0.18 of its potential returns per unit of risk. WisdomTree Investments is currently generating about -0.37 per unit of risk. If you would invest  25.00  in CI GAMES SA on October 20, 2024 and sell it today you would earn a total of  6.00  from holding CI GAMES SA or generate 24.0% return on investment over 90 days.

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

CI GAMES SA  vs.  WisdomTree Investments

CI GAMES SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CI GAMES SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CI GAMES is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

WisdomTree Investments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WisdomTree Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, WisdomTree Investments is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CI GAMES and WisdomTree Investments

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

The idea behind CI GAMES SA and WisdomTree Investments 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.