Correlation Between PLAYSTUDIOS and Applied Materials
Can any of the company-specific risk be diversified away by investing in both PLAYSTUDIOS and Applied Materials 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 PLAYSTUDIOS and Applied Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYSTUDIOS A DL 0001 and Applied Materials, you can compare the effects of market volatilities on PLAYSTUDIOS and Applied Materials 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 PLAYSTUDIOS with a short position of Applied Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYSTUDIOS and Applied Materials.
Diversification Opportunities for PLAYSTUDIOS and Applied Materials
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PLAYSTUDIOS and Applied is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PLAYSTUDIOS A DL 0001 and Applied Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Materials and PLAYSTUDIOS 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 PLAYSTUDIOS A DL 0001 are associated (or correlated) with Applied Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Materials has no effect on the direction of PLAYSTUDIOS i.e., PLAYSTUDIOS and Applied Materials go up and down completely randomly.
Pair Corralation between PLAYSTUDIOS and Applied Materials
Assuming the 90 days horizon PLAYSTUDIOS A DL 0001 is expected to generate 1.35 times more return on investment than Applied Materials. However, PLAYSTUDIOS is 1.35 times more volatile than Applied Materials. It trades about 0.34 of its potential returns per unit of risk. Applied Materials is currently generating about -0.07 per unit of risk. If you would invest 128.00 in PLAYSTUDIOS A DL 0001 on August 31, 2024 and sell it today you would earn a total of 43.00 from holding PLAYSTUDIOS A DL 0001 or generate 33.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYSTUDIOS A DL 0001 vs. Applied Materials
Performance |
| Timeline |
| PLAYSTUDIOS A DL |
| Applied Materials |
PLAYSTUDIOS and Applied Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYSTUDIOS and Applied Materials
The main advantage of trading using opposite PLAYSTUDIOS and Applied Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYSTUDIOS position performs unexpectedly, Applied Materials 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 Applied Materials will offset losses from the drop in Applied Materials' long position.| PLAYSTUDIOS vs. Apple Inc | PLAYSTUDIOS vs. Apple Inc | PLAYSTUDIOS vs. Apple Inc | PLAYSTUDIOS vs. Apple Inc |
| Applied Materials vs. ASML Holding NV | Applied Materials vs. Superior Plus Corp | Applied Materials vs. NMI Holdings | Applied Materials vs. Origin Agritech |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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