Correlation Between KRAKATAU STEEL and PLAYSTUDIOS
Can any of the company-specific risk be diversified away by investing in both KRAKATAU STEEL and PLAYSTUDIOS 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 KRAKATAU STEEL and PLAYSTUDIOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KRAKATAU STEEL B and PLAYSTUDIOS A DL 0001, you can compare the effects of market volatilities on KRAKATAU STEEL and PLAYSTUDIOS 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 KRAKATAU STEEL with a short position of PLAYSTUDIOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of KRAKATAU STEEL and PLAYSTUDIOS.
Diversification Opportunities for KRAKATAU STEEL and PLAYSTUDIOS
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KRAKATAU and PLAYSTUDIOS is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding KRAKATAU STEEL B and PLAYSTUDIOS A DL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYSTUDIOS A DL and KRAKATAU STEEL 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 KRAKATAU STEEL B are associated (or correlated) with PLAYSTUDIOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYSTUDIOS A DL has no effect on the direction of KRAKATAU STEEL i.e., KRAKATAU STEEL and PLAYSTUDIOS go up and down completely randomly.
Pair Corralation between KRAKATAU STEEL and PLAYSTUDIOS
Assuming the 90 days trading horizon KRAKATAU STEEL B is expected to generate 1.44 times more return on investment than PLAYSTUDIOS. However, KRAKATAU STEEL is 1.44 times more volatile than PLAYSTUDIOS A DL 0001. It trades about 0.21 of its potential returns per unit of risk. PLAYSTUDIOS A DL 0001 is currently generating about -0.17 per unit of risk. If you would invest 0.85 in KRAKATAU STEEL B on December 4, 2024 and sell it today you would earn a total of 0.15 from holding KRAKATAU STEEL B or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KRAKATAU STEEL B vs. PLAYSTUDIOS A DL 0001
Performance |
| Timeline |
| KRAKATAU STEEL B |
| PLAYSTUDIOS A DL |
KRAKATAU STEEL and PLAYSTUDIOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KRAKATAU STEEL and PLAYSTUDIOS
The main advantage of trading using opposite KRAKATAU STEEL and PLAYSTUDIOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KRAKATAU STEEL position performs unexpectedly, PLAYSTUDIOS 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 PLAYSTUDIOS will offset losses from the drop in PLAYSTUDIOS's long position.| KRAKATAU STEEL vs. Collins Foods Limited | KRAKATAU STEEL vs. PLANT VEDA FOODS | KRAKATAU STEEL vs. PATTIES FOODS | KRAKATAU STEEL vs. De Grey Mining |
| PLAYSTUDIOS vs. Kingdee International Software | PLAYSTUDIOS vs. Check Point Software | PLAYSTUDIOS vs. GOLDQUEST MINING | PLAYSTUDIOS vs. Zijin Mining Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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