Correlation Between PLAYMATES TOYS and CEWE Stiftung
Can any of the company-specific risk be diversified away by investing in both PLAYMATES TOYS and CEWE Stiftung 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 CEWE Stiftung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYMATES TOYS and CEWE Stiftung Co, you can compare the effects of market volatilities on PLAYMATES TOYS and CEWE Stiftung 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 CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYMATES TOYS and CEWE Stiftung.
Diversification Opportunities for PLAYMATES TOYS and CEWE Stiftung
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between PLAYMATES and CEWE is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding PLAYMATES TOYS and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung 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 CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of PLAYMATES TOYS i.e., PLAYMATES TOYS and CEWE Stiftung go up and down completely randomly.
Pair Corralation between PLAYMATES TOYS and CEWE Stiftung
Assuming the 90 days trading horizon PLAYMATES TOYS is expected to generate 7.49 times more return on investment than CEWE Stiftung. However, PLAYMATES TOYS is 7.49 times more volatile than CEWE Stiftung Co. It trades about 0.03 of its potential returns per unit of risk. CEWE Stiftung Co is currently generating about -0.02 per unit of risk. If you would invest 6.90 in PLAYMATES TOYS on October 24, 2024 and sell it today you would earn a total of 0.00 from holding PLAYMATES TOYS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
PLAYMATES TOYS vs. CEWE Stiftung Co
Performance |
| Timeline |
| PLAYMATES TOYS |
| CEWE Stiftung |
PLAYMATES TOYS and CEWE Stiftung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYMATES TOYS and CEWE Stiftung
The main advantage of trading using opposite PLAYMATES TOYS and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYMATES TOYS position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung's long position.| PLAYMATES TOYS vs. Genertec Universal Medical | PLAYMATES TOYS vs. United Airlines Holdings | PLAYMATES TOYS vs. SCANDMEDICAL SOLDK 040 | PLAYMATES TOYS vs. PULSION Medical Systems |
| CEWE Stiftung vs. JAPAN TOBACCO UNSPADR12 | CEWE Stiftung vs. Salesforce | CEWE Stiftung vs. CarsalesCom | CEWE Stiftung vs. PLAYMATES TOYS |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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