Correlation Between PLAYMATES TOYS and Ross Stores
Can any of the company-specific risk be diversified away by investing in both PLAYMATES TOYS and Ross Stores 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 Ross Stores into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYMATES TOYS and Ross Stores, you can compare the effects of market volatilities on PLAYMATES TOYS and Ross Stores 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 Ross Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYMATES TOYS and Ross Stores.
Diversification Opportunities for PLAYMATES TOYS and Ross Stores
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PLAYMATES and Ross is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding PLAYMATES TOYS and Ross Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ross Stores 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 Ross Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ross Stores has no effect on the direction of PLAYMATES TOYS i.e., PLAYMATES TOYS and Ross Stores go up and down completely randomly.
Pair Corralation between PLAYMATES TOYS and Ross Stores
Assuming the 90 days trading horizon PLAYMATES TOYS is expected to generate 3.12 times more return on investment than Ross Stores. However, PLAYMATES TOYS is 3.12 times more volatile than Ross Stores. It trades about 0.04 of its potential returns per unit of risk. Ross Stores is currently generating about 0.04 per unit of risk. If you would invest 6.50 in PLAYMATES TOYS on October 11, 2024 and sell it today you would earn a total of 0.10 from holding PLAYMATES TOYS or generate 1.54% 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 vs. Ross Stores
Performance |
| Timeline |
| PLAYMATES TOYS |
| Ross Stores |
PLAYMATES TOYS and Ross Stores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYMATES TOYS and Ross Stores
The main advantage of trading using opposite PLAYMATES TOYS and Ross Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYMATES TOYS position performs unexpectedly, Ross Stores 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 Ross Stores will offset losses from the drop in Ross Stores' long position.| PLAYMATES TOYS vs. FIREWEED METALS P | PLAYMATES TOYS vs. THAI BEVERAGE | PLAYMATES TOYS vs. National Beverage Corp | PLAYMATES TOYS vs. ARDAGH METAL PACDL 0001 |
| Ross Stores vs. MOVIE GAMES SA | Ross Stores vs. GigaMedia | Ross Stores vs. PLAYMATES TOYS | Ross Stores vs. Penn National Gaming |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |