Correlation Between PLAYMATES TOYS and CGN Power
Can any of the company-specific risk be diversified away by investing in both PLAYMATES TOYS and CGN Power 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 CGN Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYMATES TOYS and CGN Power Co, you can compare the effects of market volatilities on PLAYMATES TOYS and CGN Power 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 CGN Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYMATES TOYS and CGN Power.
Diversification Opportunities for PLAYMATES TOYS and CGN Power
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PLAYMATES and CGN is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding PLAYMATES TOYS and CGN Power Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGN Power 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 are associated (or correlated) with CGN Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGN Power has no effect on the direction of PLAYMATES TOYS i.e., PLAYMATES TOYS and CGN Power go up and down completely randomly.
Pair Corralation between PLAYMATES TOYS and CGN Power
If you would invest 6.60 in PLAYMATES TOYS on November 6, 2024 and sell it today you would earn a total of 0.20 from holding PLAYMATES TOYS or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYMATES TOYS vs. CGN Power Co
Performance |
| Timeline |
| PLAYMATES TOYS |
| CGN Power |
PLAYMATES TOYS and CGN Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYMATES TOYS and CGN Power
The main advantage of trading using opposite PLAYMATES TOYS and CGN Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYMATES TOYS position performs unexpectedly, CGN Power 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 CGN Power will offset losses from the drop in CGN Power's long position.| PLAYMATES TOYS vs. EIDESVIK OFFSHORE NK | PLAYMATES TOYS vs. DISTRICT METALS | PLAYMATES TOYS vs. PARKEN Sport Entertainment | PLAYMATES TOYS vs. JD SPORTS FASH |
| CGN Power vs. ARDAGH METAL PACDL 0001 | CGN Power vs. PKSHA TECHNOLOGY INC | CGN Power vs. Stag Industrial | CGN Power vs. SWISS WATER DECAFFCOFFEE |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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