Correlation Between Aimia and Playgon Games
Can any of the company-specific risk be diversified away by investing in both Aimia and Playgon Games 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 Aimia and Playgon Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aimia Inc and Playgon Games, you can compare the effects of market volatilities on Aimia and Playgon Games 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 Aimia with a short position of Playgon Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aimia and Playgon Games.
Diversification Opportunities for Aimia and Playgon Games
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aimia and Playgon is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aimia Inc and Playgon Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgon Games and Aimia 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 Aimia Inc are associated (or correlated) with Playgon Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgon Games has no effect on the direction of Aimia i.e., Aimia and Playgon Games go up and down completely randomly.
Pair Corralation between Aimia and Playgon Games
If you would invest 2.00 in Playgon Games on August 25, 2024 and sell it today you would lose (1.00) from holding Playgon Games or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aimia Inc vs. Playgon Games
Performance |
| Timeline |
| Aimia Inc |
| Playgon Games |
Aimia and Playgon Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aimia and Playgon Games
The main advantage of trading using opposite Aimia and Playgon Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aimia position performs unexpectedly, Playgon Games 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 Playgon Games will offset losses from the drop in Playgon Games' long position.| Aimia vs. Autocanada | Aimia vs. Corus Entertainment | Aimia vs. Element Fleet Management | Aimia vs. Dorel Industries |
| Playgon Games vs. Slate Grocery REIT | Playgon Games vs. Roots Corp | Playgon Games vs. Aimia Inc | Playgon Games vs. Tucows Inc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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