Correlation Between CI Games and Public Service

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

Diversification Opportunities for CI Games and Public Service

0.0

Correlation Coefficient

CI Games  Public Service

Pay attention - limited upside

The 3 months correlation between CIGMF and Public is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CI Games SA and Public Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Service 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 Public Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Service has no effect on the direction of CI Games i.e., CI Games and Public Service go up and down completely randomly.

Pair Corralation between CI Games and Public Service

If you would invest  155.00  in CI Games SA on April 12, 2024 and sell it today you would earn a total of  0.00  from holding CI Games SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

CI Games SA  vs.  Public Service

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 primary indicators, CI Games is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Public Service

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Public Service has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with CI Games and Public Service

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

The idea behind CI Games SA and Public Service 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.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.