Correlation Between PLAYTIKA HOLDING and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and FUYO GENERAL 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 PLAYTIKA HOLDING and FUYO GENERAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYTIKA HOLDING DL 01 and FUYO GENERAL LEASE, you can compare the effects of market volatilities on PLAYTIKA HOLDING and FUYO GENERAL 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 PLAYTIKA HOLDING with a short position of FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and FUYO GENERAL.
Diversification Opportunities for PLAYTIKA HOLDING and FUYO GENERAL
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between PLAYTIKA and FUYO is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING DL 01 are associated (or correlated) with FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and FUYO GENERAL go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and FUYO GENERAL
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the FUYO GENERAL. In addition to that, PLAYTIKA HOLDING is 1.7 times more volatile than FUYO GENERAL LEASE. It trades about 0.0 of its total potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about 0.02 per unit of volatility. If you would invest 6,300 in FUYO GENERAL LEASE on September 1, 2024 and sell it today you would earn a total of 650.00 from holding FUYO GENERAL LEASE or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| FUYO GENERAL LEASE |
PLAYTIKA HOLDING and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and FUYO GENERAL
The main advantage of trading using opposite PLAYTIKA HOLDING and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| PLAYTIKA HOLDING vs. Air Transport Services | PLAYTIKA HOLDING vs. TITANIUM TRANSPORTGROUP | PLAYTIKA HOLDING vs. Playtech plc | PLAYTIKA HOLDING vs. Gold Road Resources |
| FUYO GENERAL vs. United Rentals | FUYO GENERAL vs. Superior Plus Corp | FUYO GENERAL vs. NMI Holdings | FUYO GENERAL 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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