Correlation Between Creotech Instruments and CI Games
Can any of the company-specific risk be diversified away by investing in both Creotech Instruments 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 Creotech Instruments and CI Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creotech Instruments SA and CI Games SA, you can compare the effects of market volatilities on Creotech Instruments 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 Creotech Instruments with a short position of CI Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creotech Instruments and CI Games.
Diversification Opportunities for Creotech Instruments and CI Games
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Creotech and CIG is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Creotech Instruments SA 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 Creotech Instruments 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 Creotech Instruments SA 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 Creotech Instruments i.e., Creotech Instruments and CI Games go up and down completely randomly.
Pair Corralation between Creotech Instruments and CI Games
Assuming the 90 days trading horizon Creotech Instruments is expected to generate 1.32 times less return on investment than CI Games. In addition to that, Creotech Instruments is 1.15 times more volatile than CI Games SA. It trades about 0.13 of its total potential returns per unit of risk. CI Games SA is currently generating about 0.2 per unit of volatility. If you would invest 130.00 in CI Games SA on December 30, 2024 and sell it today you would earn a total of 40.00 from holding CI Games SA or generate 30.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Creotech Instruments SA vs. CI Games SA
Performance |
Timeline |
Creotech Instruments |
CI Games SA |
Creotech Instruments and CI Games Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Creotech Instruments and CI Games
The main advantage of trading using opposite Creotech Instruments and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creotech Instruments 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.Creotech Instruments vs. Road Studio SA | Creotech Instruments vs. Alior Bank SA | Creotech Instruments vs. Creativeforge Games SA | Creotech Instruments vs. Play2Chill SA |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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