Correlation Between GigaMedia and PLAYSTUDIOS
Can any of the company-specific risk be diversified away by investing in both GigaMedia 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 GigaMedia and PLAYSTUDIOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaMedia and PLAYSTUDIOS A DL 0001, you can compare the effects of market volatilities on GigaMedia 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 GigaMedia with a short position of PLAYSTUDIOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaMedia and PLAYSTUDIOS.
Diversification Opportunities for GigaMedia and PLAYSTUDIOS
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GigaMedia and PLAYSTUDIOS is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding GigaMedia 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 GigaMedia 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 GigaMedia 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 GigaMedia i.e., GigaMedia and PLAYSTUDIOS go up and down completely randomly.
Pair Corralation between GigaMedia and PLAYSTUDIOS
Assuming the 90 days trading horizon GigaMedia is expected to generate 0.45 times more return on investment than PLAYSTUDIOS. However, GigaMedia is 2.24 times less risky than PLAYSTUDIOS. It trades about 0.03 of its potential returns per unit of risk. PLAYSTUDIOS A DL 0001 is currently generating about -0.02 per unit of risk. If you would invest 108.00 in GigaMedia on September 17, 2024 and sell it today you would earn a total of 25.00 from holding GigaMedia or generate 23.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaMedia vs. PLAYSTUDIOS A DL 0001
Performance |
| Timeline |
| GigaMedia |
| PLAYSTUDIOS A DL |
GigaMedia and PLAYSTUDIOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaMedia and PLAYSTUDIOS
The main advantage of trading using opposite GigaMedia and PLAYSTUDIOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaMedia 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.The idea behind GigaMedia and PLAYSTUDIOS A DL 0001 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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