Correlation Between PLAYWITH and Green Cross
Can any of the company-specific risk be diversified away by investing in both PLAYWITH and Green Cross 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 PLAYWITH and Green Cross into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYWITH and Green Cross Medical, you can compare the effects of market volatilities on PLAYWITH and Green Cross 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 PLAYWITH with a short position of Green Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWITH and Green Cross.
Diversification Opportunities for PLAYWITH and Green Cross
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PLAYWITH and Green is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWITH and Green Cross Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cross Medical and PLAYWITH 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 PLAYWITH are associated (or correlated) with Green Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cross Medical has no effect on the direction of PLAYWITH i.e., PLAYWITH and Green Cross go up and down completely randomly.
Pair Corralation between PLAYWITH and Green Cross
Assuming the 90 days trading horizon PLAYWITH is expected to under-perform the Green Cross. But the stock apears to be less risky and, when comparing its historical volatility, PLAYWITH is 1.08 times less risky than Green Cross. The stock trades about -0.09 of its potential returns per unit of risk. The Green Cross Medical is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 407,000 in Green Cross Medical on September 12, 2024 and sell it today you would lose (73,500) from holding Green Cross Medical or give up 18.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYWITH vs. Green Cross Medical
Performance |
| Timeline |
| PLAYWITH |
| Green Cross Medical |
PLAYWITH and Green Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYWITH and Green Cross
The main advantage of trading using opposite PLAYWITH and Green Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYWITH position performs unexpectedly, Green Cross 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 Green Cross will offset losses from the drop in Green Cross' long position.| PLAYWITH vs. YG Entertainment | PLAYWITH vs. JYP Entertainment | PLAYWITH vs. Cube Entertainment | PLAYWITH vs. FNC Entertainment Co |
| Green Cross vs. Samsung Electronics Co | Green Cross vs. Samsung Electronics Co | Green Cross vs. SK Hynix | Green Cross vs. SK Holdings Co |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |