Correlation Between Noble Financials and CI Games

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

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

Diversification Opportunities for Noble Financials and CI Games

0.52

Correlation Coefficient

Noble Financials  CI Games

Very weak diversification

The 3 months correlation between Noble and CIG is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Noble Financials 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 Noble Financials 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 Noble Financials 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 Noble Financials i.e., Noble Financials and CI Games go up and down completely randomly.

Pair Corralation between Noble Financials and CI Games

Assuming the 90 days trading horizon Noble Financials is expected to generate 5.37 times less return on investment than CI Games. In addition to that, Noble Financials is 1.11 times more volatile than CI Games SA. It trades about 0.03 of its total potential returns per unit of risk. CI Games SA is currently generating about 0.21 per unit of volatility. If you would invest  183.00  in CI Games SA on April 25, 2025 and sell it today you would earn a total of  78.00  from holding CI Games SA or generate 42.62% return on investment over 90 days.

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

Noble Financials SA  vs.  CI Games SA

Noble Financials

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Noble Financials SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Noble Financials may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CI Games SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CI Games SA are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, CI Games reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Noble Financials and CI Games

The main advantage of trading using opposite Noble Financials and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Noble Financials 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 Noble Financials SA 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.