Correlation Between PLAYSTUDIOS and CHINA SOUTHN
Can any of the company-specific risk be diversified away by investing in both PLAYSTUDIOS and CHINA SOUTHN 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 CHINA SOUTHN 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 CHINA SOUTHN AIR H , you can compare the effects of market volatilities on PLAYSTUDIOS and CHINA SOUTHN 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 CHINA SOUTHN. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYSTUDIOS and CHINA SOUTHN.
Diversification Opportunities for PLAYSTUDIOS and CHINA SOUTHN
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PLAYSTUDIOS and CHINA is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding PLAYSTUDIOS A DL 0001 and CHINA SOUTHN AIR H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA SOUTHN AIR 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 CHINA SOUTHN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA SOUTHN AIR has no effect on the direction of PLAYSTUDIOS i.e., PLAYSTUDIOS and CHINA SOUTHN go up and down completely randomly.
Pair Corralation between PLAYSTUDIOS and CHINA SOUTHN
Assuming the 90 days horizon PLAYSTUDIOS A DL 0001 is expected to under-perform the CHINA SOUTHN. In addition to that, PLAYSTUDIOS is 1.08 times more volatile than CHINA SOUTHN AIR H . It trades about -0.03 of its total potential returns per unit of risk. CHINA SOUTHN AIR H is currently generating about 0.0 per unit of volatility. If you would invest 59.00 in CHINA SOUTHN AIR H on October 28, 2024 and sell it today you would lose (12.00) from holding CHINA SOUTHN AIR H or give up 20.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYSTUDIOS A DL 0001 vs. CHINA SOUTHN AIR H
Performance |
| Timeline |
| PLAYSTUDIOS A DL |
| CHINA SOUTHN AIR |
PLAYSTUDIOS and CHINA SOUTHN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYSTUDIOS and CHINA SOUTHN
The main advantage of trading using opposite PLAYSTUDIOS and CHINA SOUTHN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYSTUDIOS position performs unexpectedly, CHINA SOUTHN 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 CHINA SOUTHN will offset losses from the drop in CHINA SOUTHN's long position.| PLAYSTUDIOS vs. Platinum Investment Management | PLAYSTUDIOS vs. Iridium Communications | PLAYSTUDIOS vs. Corporate Travel Management | PLAYSTUDIOS vs. Waste Management |
| CHINA SOUTHN vs. AOYAMA TRADING | CHINA SOUTHN vs. Apollo Medical Holdings | CHINA SOUTHN vs. CREO MEDICAL GRP | CHINA SOUTHN vs. AGNC INVESTMENT |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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