Correlation Between Sims Metal and PLAYSTUDIOS

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Sims Metal 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 Sims Metal and PLAYSTUDIOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sims Metal Management and PLAYSTUDIOS A DL 0001, you can compare the effects of market volatilities on Sims Metal 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 Sims Metal with a short position of PLAYSTUDIOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sims Metal and PLAYSTUDIOS.

Diversification Opportunities for Sims Metal and PLAYSTUDIOS

0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between Sims and PLAYSTUDIOS is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sims Metal Management 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 Sims Metal 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 Sims Metal Management 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 Sims Metal i.e., Sims Metal and PLAYSTUDIOS go up and down completely randomly.

Pair Corralation between Sims Metal and PLAYSTUDIOS

Assuming the 90 days horizon Sims Metal Management is expected to generate 0.63 times more return on investment than PLAYSTUDIOS. However, Sims Metal Management is 1.58 times less risky than PLAYSTUDIOS. It trades about 0.01 of its potential returns per unit of risk. PLAYSTUDIOS A DL 0001 is currently generating about -0.03 per unit of risk. If you would invest  829.00  in Sims Metal Management on September 3, 2024 and sell it today you would lose (29.00) from holding Sims Metal Management or give up 3.5% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Sims Metal Management  vs.  PLAYSTUDIOS A DL 0001

 Performance 
       Timeline  
Sims Metal Management 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Sims Metal Management are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sims Metal reported solid returns over the last few months and may actually be approaching a breakup point.
PLAYSTUDIOS A DL 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in PLAYSTUDIOS A DL 0001 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, PLAYSTUDIOS reported solid returns over the last few months and may actually be approaching a breakup point.

Sims Metal and PLAYSTUDIOS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sims Metal and PLAYSTUDIOS

The main advantage of trading using opposite Sims Metal and PLAYSTUDIOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sims Metal 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 Sims Metal Management 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.
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.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Stocks Directory
Find actively traded stocks across global markets