Correlation Between Playmates Toys and CHINA SOUTHN
Can any of the company-specific risk be diversified away by investing in both Playmates Toys and CHINA SOUTHN 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 CHINA SOUTHN 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 CHINA SOUTHN AIR H , you can compare the effects of market volatilities on Playmates Toys and CHINA SOUTHN 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 CHINA SOUTHN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playmates Toys and CHINA SOUTHN.
Diversification Opportunities for Playmates Toys and CHINA SOUTHN
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Playmates and CHINA is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Playmates Toys Limited and CHINA SOUTHN AIR H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA SOUTHN AIR 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 CHINA SOUTHN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA SOUTHN AIR has no effect on the direction of Playmates Toys i.e., Playmates Toys and CHINA SOUTHN go up and down completely randomly.
Pair Corralation between Playmates Toys and CHINA SOUTHN
Assuming the 90 days horizon Playmates Toys Limited is expected to generate 2.57 times more return on investment than CHINA SOUTHN. However, Playmates Toys is 2.57 times more volatile than CHINA SOUTHN AIR H . It trades about 0.08 of its potential returns per unit of risk. CHINA SOUTHN AIR H is currently generating about 0.0 per unit of risk. If you would invest 1.28 in Playmates Toys Limited on October 28, 2024 and sell it today you would earn a total of 5.22 from holding Playmates Toys Limited or generate 407.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playmates Toys Limited vs. CHINA SOUTHN AIR H
Performance |
| Timeline |
| Playmates Toys |
| CHINA SOUTHN AIR |
Playmates Toys and CHINA SOUTHN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playmates Toys and CHINA SOUTHN
The main advantage of trading using opposite Playmates Toys and CHINA SOUTHN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playmates Toys position performs unexpectedly, CHINA SOUTHN 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 CHINA SOUTHN will offset losses from the drop in CHINA SOUTHN's long position.| Playmates Toys vs. Booking Holdings | Playmates Toys vs. Oriental Land Co | Playmates Toys vs. ANTA Sports Products | Playmates Toys vs. Li Ning Company |
| CHINA SOUTHN vs. AOYAMA TRADING | CHINA SOUTHN vs. Apollo Medical Holdings | CHINA SOUTHN vs. CREO MEDICAL GRP | CHINA SOUTHN vs. AGNC INVESTMENT |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |