Correlation Between FUYO GENERAL and PLAYTECH
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and PLAYTECH 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 FUYO GENERAL and PLAYTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and PLAYTECH, you can compare the effects of market volatilities on FUYO GENERAL and PLAYTECH 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 FUYO GENERAL with a short position of PLAYTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and PLAYTECH.
Diversification Opportunities for FUYO GENERAL and PLAYTECH
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between FUYO and PLAYTECH is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and PLAYTECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTECH and FUYO GENERAL 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 FUYO GENERAL LEASE are associated (or correlated) with PLAYTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTECH has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and PLAYTECH go up and down completely randomly.
Pair Corralation between FUYO GENERAL and PLAYTECH
Assuming the 90 days horizon FUYO GENERAL is expected to generate 2.26 times less return on investment than PLAYTECH. But when comparing it to its historical volatility, FUYO GENERAL LEASE is 1.49 times less risky than PLAYTECH. It trades about 0.03 of its potential returns per unit of risk. PLAYTECH is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 645.00 in PLAYTECH on November 6, 2024 and sell it today you would earn a total of 237.00 from holding PLAYTECH or generate 36.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. PLAYTECH
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| PLAYTECH |
FUYO GENERAL and PLAYTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and PLAYTECH
The main advantage of trading using opposite FUYO GENERAL and PLAYTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, PLAYTECH 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 PLAYTECH will offset losses from the drop in PLAYTECH's long position.| FUYO GENERAL vs. Suntory Beverage Food | FUYO GENERAL vs. MTY Food Group | FUYO GENERAL vs. GREENX METALS LTD | FUYO GENERAL vs. GWILLI FOOD |
| PLAYTECH vs. PREMIER FOODS | PLAYTECH vs. Air Lease | PLAYTECH vs. FIRST SHIP LEASE | PLAYTECH vs. GWILLI FOOD |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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