Correlation Between PLAYWITH and CG Hi
Can any of the company-specific risk be diversified away by investing in both PLAYWITH and CG Hi 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 CG Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYWITH and CG Hi Tech, you can compare the effects of market volatilities on PLAYWITH and CG Hi 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 CG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWITH and CG Hi.
Diversification Opportunities for PLAYWITH and CG Hi
Poor diversification
The 3 months correlation between PLAYWITH and 264660 is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWITH and CG Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CG Hi Tech 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 CG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CG Hi Tech has no effect on the direction of PLAYWITH i.e., PLAYWITH and CG Hi go up and down completely randomly.
Pair Corralation between PLAYWITH and CG Hi
Assuming the 90 days trading horizon PLAYWITH is expected to under-perform the CG Hi. In addition to that, PLAYWITH is 1.58 times more volatile than CG Hi Tech. It trades about -0.02 of its total potential returns per unit of risk. CG Hi Tech is currently generating about 0.0 per unit of volatility. If you would invest 1,115,083 in CG Hi Tech on September 3, 2024 and sell it today you would lose (127,083) from holding CG Hi Tech or give up 11.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYWITH vs. CG Hi Tech
Performance |
| Timeline |
| PLAYWITH |
| CG Hi Tech |
PLAYWITH and CG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYWITH and CG Hi
The main advantage of trading using opposite PLAYWITH and CG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYWITH position performs unexpectedly, CG Hi 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 CG Hi will offset losses from the drop in CG Hi's long position.| PLAYWITH vs. Korea New Network | PLAYWITH vs. ICD Co | PLAYWITH vs. DYPNF CoLtd | PLAYWITH vs. Busan Industrial 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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