Correlation Between Astarta Holding and CI Games

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

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

Diversification Opportunities for Astarta Holding and CI Games

-0.83

Correlation Coefficient

Astarta Holding  CI Games

Pay attention - limited upside

The 3 months correlation between Astarta and CIG is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Astarta Holding NV 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 Astarta Holding 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 Astarta Holding NV 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 Astarta Holding i.e., Astarta Holding and CI Games go up and down completely randomly.

Pair Corralation between Astarta Holding and CI Games

Assuming the 90 days trading horizon Astarta Holding NV is expected to generate 1.09 times more return on investment than CI Games. However, Astarta Holding is 1.09 times more volatile than CI Games SA. It trades about 0.2 of its potential returns per unit of risk. CI Games SA is currently generating about -0.16 per unit of risk. If you would invest  3,150  in Astarta Holding NV on September 29, 2024 and sell it today you would earn a total of  930.00  from holding Astarta Holding NV or generate 29.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Astarta Holding NV  vs.  CI Games SA

Astarta Holding NV

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Astarta Holding NV are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Astarta Holding reported solid returns over the last few months and may actually be approaching a breakup point.

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. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Astarta Holding and CI Games

The main advantage of trading using opposite Astarta Holding and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astarta Holding 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.

The idea behind Astarta Holding NV and CI Games SA 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.