Correlation Between Maire Tecnimont and PLAYMATES TOYS
Can any of the company-specific risk be diversified away by investing in both Maire Tecnimont and PLAYMATES TOYS 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 Maire Tecnimont and PLAYMATES TOYS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maire Tecnimont SpA and PLAYMATES TOYS, you can compare the effects of market volatilities on Maire Tecnimont and PLAYMATES TOYS 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 Maire Tecnimont with a short position of PLAYMATES TOYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maire Tecnimont and PLAYMATES TOYS.
Diversification Opportunities for Maire Tecnimont and PLAYMATES TOYS
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maire and PLAYMATES is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Maire Tecnimont SpA and PLAYMATES TOYS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYMATES TOYS and Maire Tecnimont 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 Maire Tecnimont SpA are associated (or correlated) with PLAYMATES TOYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYMATES TOYS has no effect on the direction of Maire Tecnimont i.e., Maire Tecnimont and PLAYMATES TOYS go up and down completely randomly.
Pair Corralation between Maire Tecnimont and PLAYMATES TOYS
Assuming the 90 days trading horizon Maire Tecnimont is expected to generate 1.72 times less return on investment than PLAYMATES TOYS. But when comparing it to its historical volatility, Maire Tecnimont SpA is 2.71 times less risky than PLAYMATES TOYS. It trades about 0.11 of its potential returns per unit of risk. PLAYMATES TOYS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2.57 in PLAYMATES TOYS on September 12, 2024 and sell it today you would earn a total of 3.93 from holding PLAYMATES TOYS or generate 152.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Maire Tecnimont SpA vs. PLAYMATES TOYS
Performance |
| Timeline |
| Maire Tecnimont SpA |
| PLAYMATES TOYS |
Maire Tecnimont and PLAYMATES TOYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maire Tecnimont and PLAYMATES TOYS
The main advantage of trading using opposite Maire Tecnimont and PLAYMATES TOYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maire Tecnimont position performs unexpectedly, PLAYMATES TOYS 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 PLAYMATES TOYS will offset losses from the drop in PLAYMATES TOYS's long position.| Maire Tecnimont vs. PLAYMATES TOYS | Maire Tecnimont vs. ePlay Digital | Maire Tecnimont vs. Goodyear Tire Rubber | Maire Tecnimont vs. Heidelberg Materials AG |
| PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Apple Inc |
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 CEOs Directory module to screen CEOs from public companies around the world.
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