Correlation Between CIG PANNONIA and PLAYSTUDIOS
Can any of the company-specific risk be diversified away by investing in both CIG PANNONIA 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 CIG PANNONIA and PLAYSTUDIOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIG PANNONIA LIFE and PLAYSTUDIOS A DL 0001, you can compare the effects of market volatilities on CIG PANNONIA 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 CIG PANNONIA with a short position of PLAYSTUDIOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIG PANNONIA and PLAYSTUDIOS.
Diversification Opportunities for CIG PANNONIA and PLAYSTUDIOS
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CIG and PLAYSTUDIOS is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding CIG PANNONIA LIFE 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 CIG PANNONIA 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 CIG PANNONIA LIFE 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 CIG PANNONIA i.e., CIG PANNONIA and PLAYSTUDIOS go up and down completely randomly.
Pair Corralation between CIG PANNONIA and PLAYSTUDIOS
Assuming the 90 days trading horizon CIG PANNONIA LIFE is expected to generate 0.62 times more return on investment than PLAYSTUDIOS. However, CIG PANNONIA LIFE is 1.62 times less risky than PLAYSTUDIOS. It trades about 0.48 of its potential returns per unit of risk. PLAYSTUDIOS A DL 0001 is currently generating about -0.24 per unit of risk. If you would invest 85.00 in CIG PANNONIA LIFE on October 25, 2024 and sell it today you would earn a total of 11.00 from holding CIG PANNONIA LIFE or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
CIG PANNONIA LIFE vs. PLAYSTUDIOS A DL 0001
Performance |
| Timeline |
| CIG PANNONIA LIFE |
| PLAYSTUDIOS A DL |
CIG PANNONIA and PLAYSTUDIOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIG PANNONIA and PLAYSTUDIOS
The main advantage of trading using opposite CIG PANNONIA and PLAYSTUDIOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIG PANNONIA 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.| CIG PANNONIA vs. Diamyd Medical AB | CIG PANNONIA vs. Meli Hotels International | CIG PANNONIA vs. Park Hotels Resorts | CIG PANNONIA vs. Apollo Medical Holdings |
| PLAYSTUDIOS vs. Corporate Office Properties | PLAYSTUDIOS vs. CN DATANG C | PLAYSTUDIOS vs. alstria office REIT AG | PLAYSTUDIOS vs. KENEDIX OFFICE INV |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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