Correlation Between Playgram and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Playgram and KIWI Media 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 Playgram and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playgram Co and KIWI Media Group, you can compare the effects of market volatilities on Playgram and KIWI Media 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 Playgram with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playgram and KIWI Media.
Diversification Opportunities for Playgram and KIWI Media
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Playgram and KIWI is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Playgram Co and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group and Playgram 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 Playgram Co are associated (or correlated) with KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of Playgram i.e., Playgram and KIWI Media go up and down completely randomly.
Pair Corralation between Playgram and KIWI Media
Assuming the 90 days trading horizon Playgram Co is expected to generate 1.74 times more return on investment than KIWI Media. However, Playgram is 1.74 times more volatile than KIWI Media Group. It trades about 0.1 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.14 per unit of risk. If you would invest 36,400 in Playgram Co on August 29, 2024 and sell it today you would earn a total of 3,300 from holding Playgram Co or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Playgram Co vs. KIWI Media Group
Performance |
| Timeline |
| Playgram |
| KIWI Media Group |
Playgram and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playgram and KIWI Media
The main advantage of trading using opposite Playgram and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playgram position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media's long position.| Playgram vs. Haitai Confectionery Foods | Playgram vs. Samyang Foods Co | Playgram vs. Aprogen Healthcare Games | Playgram vs. Shinsegae Food |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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