Correlation Between PLAYWAY SA and Safety Insurance
Can any of the company-specific risk be diversified away by investing in both PLAYWAY SA and Safety Insurance 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 PLAYWAY SA and Safety Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYWAY SA ZY 10 and Safety Insurance Group, you can compare the effects of market volatilities on PLAYWAY SA and Safety Insurance 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 PLAYWAY SA with a short position of Safety Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWAY SA and Safety Insurance.
Diversification Opportunities for PLAYWAY SA and Safety Insurance
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between PLAYWAY and Safety is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWAY SA ZY 10 and Safety Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safety Insurance and PLAYWAY SA 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 PLAYWAY SA ZY 10 are associated (or correlated) with Safety Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safety Insurance has no effect on the direction of PLAYWAY SA i.e., PLAYWAY SA and Safety Insurance go up and down completely randomly.
Pair Corralation between PLAYWAY SA and Safety Insurance
Assuming the 90 days horizon PLAYWAY SA ZY 10 is expected to generate 1.45 times more return on investment than Safety Insurance. However, PLAYWAY SA is 1.45 times more volatile than Safety Insurance Group. It trades about 0.3 of its potential returns per unit of risk. Safety Insurance Group is currently generating about -0.3 per unit of risk. If you would invest 6,220 in PLAYWAY SA ZY 10 on October 28, 2024 and sell it today you would earn a total of 770.00 from holding PLAYWAY SA ZY 10 or generate 12.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYWAY SA ZY 10 vs. Safety Insurance Group
Performance |
| Timeline |
| PLAYWAY SA ZY |
| Safety Insurance |
PLAYWAY SA and Safety Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYWAY SA and Safety Insurance
The main advantage of trading using opposite PLAYWAY SA and Safety Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYWAY SA position performs unexpectedly, Safety Insurance 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 Safety Insurance will offset losses from the drop in Safety Insurance's long position.| PLAYWAY SA vs. NEXON Co | PLAYWAY SA vs. NEXON Co | PLAYWAY SA vs. Take Two Interactive Software | PLAYWAY SA vs. Aristocrat Leisure Limited |
| Safety Insurance vs. PICC Property and | Safety Insurance vs. Fairfax Financial Holdings | Safety Insurance vs. QBE Insurance Group | Safety Insurance vs. Insurance Australia Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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