Correlation Between NICE Information and Playgram
Can any of the company-specific risk be diversified away by investing in both NICE Information and Playgram 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 NICE Information and Playgram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NICE Information Service and Playgram Co, you can compare the effects of market volatilities on NICE Information and Playgram 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 NICE Information with a short position of Playgram. Check out your portfolio center. Please also check ongoing floating volatility patterns of NICE Information and Playgram.
Diversification Opportunities for NICE Information and Playgram
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NICE and Playgram is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding NICE Information Service and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram and NICE Information 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 NICE Information Service are associated (or correlated) with Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of NICE Information i.e., NICE Information and Playgram go up and down completely randomly.
Pair Corralation between NICE Information and Playgram
Assuming the 90 days trading horizon NICE Information is expected to generate 3.8 times less return on investment than Playgram. But when comparing it to its historical volatility, NICE Information Service is 2.49 times less risky than Playgram. It trades about 0.1 of its potential returns per unit of risk. Playgram Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 31,100 in Playgram Co on October 16, 2024 and sell it today you would earn a total of 9,300 from holding Playgram Co or generate 29.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NICE Information Service vs. Playgram Co
Performance |
| Timeline |
| NICE Information Service |
| Playgram |
NICE Information and Playgram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NICE Information and Playgram
The main advantage of trading using opposite NICE Information and Playgram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NICE Information position performs unexpectedly, Playgram 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 Playgram will offset losses from the drop in Playgram's long position.| NICE Information vs. Haitai Confectionery Foods | NICE Information vs. Asiana Airlines | NICE Information vs. Hankukpackage Co | NICE Information vs. T3 Entertainment Co |
| Playgram vs. Songwon Industrial Co | Playgram vs. NICE Information Service | Playgram vs. Daou Data Corp | Playgram vs. Sam Yang Foods |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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