Correlation Between PLAYMATES TOYS and SBI Holdings
Can any of the company-specific risk be diversified away by investing in both PLAYMATES TOYS and SBI Holdings 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 SBI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYMATES TOYS and SBI Holdings, you can compare the effects of market volatilities on PLAYMATES TOYS and SBI Holdings 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 SBI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYMATES TOYS and SBI Holdings.
Diversification Opportunities for PLAYMATES TOYS and SBI Holdings
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PLAYMATES and SBI is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding PLAYMATES TOYS and SBI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Holdings 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 SBI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Holdings has no effect on the direction of PLAYMATES TOYS i.e., PLAYMATES TOYS and SBI Holdings go up and down completely randomly.
Pair Corralation between PLAYMATES TOYS and SBI Holdings
Assuming the 90 days trading horizon PLAYMATES TOYS is expected to generate 2.72 times more return on investment than SBI Holdings. However, PLAYMATES TOYS is 2.72 times more volatile than SBI Holdings. It trades about 0.02 of its potential returns per unit of risk. SBI Holdings is currently generating about -0.08 per unit of risk. If you would invest 6.60 in PLAYMATES TOYS on October 12, 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYMATES TOYS vs. SBI Holdings
Performance |
| Timeline |
| PLAYMATES TOYS |
| SBI Holdings |
PLAYMATES TOYS and SBI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYMATES TOYS and SBI Holdings
The main advantage of trading using opposite PLAYMATES TOYS and SBI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYMATES TOYS position performs unexpectedly, SBI Holdings 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 SBI Holdings will offset losses from the drop in SBI Holdings' long position.| PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Apple Inc |
| SBI Holdings vs. PENN NATL GAMING | SBI Holdings vs. CREO MEDICAL GRP | SBI Holdings vs. PLAYMATES TOYS | SBI Holdings vs. Scientific Games |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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