Correlation Between Playmates Toys and CIG PANNONIA
Can any of the company-specific risk be diversified away by investing in both Playmates Toys and CIG PANNONIA 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 Playmates Toys and CIG PANNONIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playmates Toys Limited and CIG PANNONIA LIFE, you can compare the effects of market volatilities on Playmates Toys and CIG PANNONIA 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 Playmates Toys with a short position of CIG PANNONIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playmates Toys and CIG PANNONIA.
Diversification Opportunities for Playmates Toys and CIG PANNONIA
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Playmates and CIG is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Playmates Toys Limited and CIG PANNONIA LIFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIG PANNONIA LIFE and Playmates Toys 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 Playmates Toys Limited are associated (or correlated) with CIG PANNONIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIG PANNONIA LIFE has no effect on the direction of Playmates Toys i.e., Playmates Toys and CIG PANNONIA go up and down completely randomly.
Pair Corralation between Playmates Toys and CIG PANNONIA
Assuming the 90 days horizon Playmates Toys is expected to generate 1.87 times less return on investment than CIG PANNONIA. In addition to that, Playmates Toys is 8.12 times more volatile than CIG PANNONIA LIFE. It trades about 0.03 of its total potential returns per unit of risk. CIG PANNONIA LIFE is currently generating about 0.48 per unit of volatility. 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 | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Playmates Toys Limited vs. CIG PANNONIA LIFE
Performance |
| Timeline |
| Playmates Toys |
| CIG PANNONIA LIFE |
Playmates Toys and CIG PANNONIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playmates Toys and CIG PANNONIA
The main advantage of trading using opposite Playmates Toys and CIG PANNONIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playmates Toys position performs unexpectedly, CIG PANNONIA 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 CIG PANNONIA will offset losses from the drop in CIG PANNONIA's long position.| Playmates Toys vs. China Datang | Playmates Toys vs. AIR PRODCHEMICALS | Playmates Toys vs. Haverty Furniture Companies | Playmates Toys vs. Addus HomeCare |
| CIG PANNONIA vs. Diamyd Medical AB | CIG PANNONIA vs. Meli Hotels International | CIG PANNONIA vs. Park Hotels Resorts | CIG PANNONIA vs. Apollo Medical Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |