Correlation Between FRONTEO and CGI
Can any of the company-specific risk be diversified away by investing in both FRONTEO and CGI 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 FRONTEO and CGI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRONTEO and CGI Inc, you can compare the effects of market volatilities on FRONTEO and CGI 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 FRONTEO with a short position of CGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRONTEO and CGI.
Diversification Opportunities for FRONTEO and CGI
Pay attention - limited upside
The 3 months correlation between FRONTEO and CGI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FRONTEO and CGI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGI Inc and FRONTEO 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 FRONTEO are associated (or correlated) with CGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGI Inc has no effect on the direction of FRONTEO i.e., FRONTEO and CGI go up and down completely randomly.
Pair Corralation between FRONTEO and CGI
If you would invest 7,939 in CGI Inc on January 25, 2024 and sell it today you would earn a total of 2,590 from holding CGI Inc or generate 32.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FRONTEO vs. CGI Inc
Performance |
| Timeline |
| FRONTEO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CGI Inc |
FRONTEO and CGI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRONTEO and CGI
The main advantage of trading using opposite FRONTEO and CGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRONTEO position performs unexpectedly, CGI 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 CGI will offset losses from the drop in CGI's long position.| FRONTEO vs. Vacasa Inc | FRONTEO vs. 908 Devices | FRONTEO vs. Cadence Design Systems | FRONTEO vs. Pinterest |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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