Correlation Between Giga Media and Playstudios
Can any of the company-specific risk be diversified away by investing in both Giga Media 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 Giga Media and Playstudios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Giga Media and Playstudios, you can compare the effects of market volatilities on Giga Media 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 Giga Media with a short position of Playstudios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giga Media and Playstudios.
Diversification Opportunities for Giga Media and Playstudios
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Giga and Playstudios is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Giga Media and Playstudios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playstudios and Giga Media 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 Giga Media 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 has no effect on the direction of Giga Media i.e., Giga Media and Playstudios go up and down completely randomly.
Pair Corralation between Giga Media and Playstudios
Given the investment horizon of 90 days Giga Media is expected to generate 5.98 times less return on investment than Playstudios. But when comparing it to its historical volatility, Giga Media is 3.39 times less risky than Playstudios. It trades about 0.19 of its potential returns per unit of risk. Playstudios is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 141.00 in Playstudios on August 30, 2024 and sell it today you would earn a total of 44.00 from holding Playstudios or generate 31.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Giga Media vs. Playstudios
Performance |
| Timeline |
| Giga Media |
| Playstudios |
Giga Media and Playstudios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giga Media and Playstudios
The main advantage of trading using opposite Giga Media and Playstudios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giga Media 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' long position.| Giga Media vs. SohuCom | Giga Media vs. Snail, Class A | Giga Media vs. Playstudios | Giga Media vs. Playtika Holding Corp |
| Playstudios vs. SohuCom | Playstudios vs. Snail, Class A | Playstudios vs. Playtika Holding Corp | Playstudios vs. Golden Matrix Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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