Correlation Between Applied Materials and PLAYSTUDIOS
Can any of the company-specific risk be diversified away by investing in both Applied Materials and PLAYSTUDIOS 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 Applied Materials and PLAYSTUDIOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Materials and PLAYSTUDIOS A DL 0001, you can compare the effects of market volatilities on Applied Materials and PLAYSTUDIOS 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 Applied Materials with a short position of PLAYSTUDIOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Materials and PLAYSTUDIOS.
Diversification Opportunities for Applied Materials and PLAYSTUDIOS
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Applied and PLAYSTUDIOS is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Applied Materials and PLAYSTUDIOS A DL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYSTUDIOS A DL and Applied Materials 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 Applied Materials are associated (or correlated) with PLAYSTUDIOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYSTUDIOS A DL has no effect on the direction of Applied Materials i.e., Applied Materials and PLAYSTUDIOS go up and down completely randomly.
Pair Corralation between Applied Materials and PLAYSTUDIOS
Assuming the 90 days horizon Applied Materials is expected to under-perform the PLAYSTUDIOS. But the stock apears to be less risky and, when comparing its historical volatility, Applied Materials is 1.35 times less risky than PLAYSTUDIOS. The stock trades about -0.07 of its potential returns per unit of risk. The PLAYSTUDIOS A DL 0001 is currently generating about 0.34 of returns per unit of risk over similar time horizon. 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 |
Applied Materials vs. PLAYSTUDIOS A DL 0001
Performance |
| Timeline |
| Applied Materials |
| PLAYSTUDIOS A DL |
Applied Materials and PLAYSTUDIOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Materials and PLAYSTUDIOS
The main advantage of trading using opposite Applied Materials and PLAYSTUDIOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Materials position performs unexpectedly, PLAYSTUDIOS 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 PLAYSTUDIOS will offset losses from the drop in PLAYSTUDIOS's long position.| Applied Materials vs. ASML Holding NV | Applied Materials vs. Superior Plus Corp | Applied Materials vs. NMI Holdings | Applied Materials vs. Origin Agritech |
| PLAYSTUDIOS vs. Apple Inc | PLAYSTUDIOS vs. Apple Inc | PLAYSTUDIOS vs. Apple Inc | PLAYSTUDIOS vs. Apple 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 CEOs Directory module to screen CEOs from public companies around the world.
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