Correlation Between Light Wonder and Playmaker Capital
Can any of the company-specific risk be diversified away by investing in both Light Wonder and Playmaker Capital 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 Light Wonder and Playmaker Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Light Wonder and Playmaker Capital, you can compare the effects of market volatilities on Light Wonder and Playmaker Capital 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 Light Wonder with a short position of Playmaker Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Light Wonder and Playmaker Capital.
Diversification Opportunities for Light Wonder and Playmaker Capital
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Light and Playmaker is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Light Wonder and Playmaker Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playmaker Capital and Light Wonder 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 Light Wonder are associated (or correlated) with Playmaker Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playmaker Capital has no effect on the direction of Light Wonder i.e., Light Wonder and Playmaker Capital go up and down completely randomly.
Pair Corralation between Light Wonder and Playmaker Capital
If you would invest 9,569 in Light Wonder on August 28, 2024 and sell it today you would earn a total of 276.00 from holding Light Wonder or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Light Wonder vs. Playmaker Capital
Performance |
| Timeline |
| Light Wonder |
| Playmaker Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Light Wonder and Playmaker Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Light Wonder and Playmaker Capital
The main advantage of trading using opposite Light Wonder and Playmaker Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Light Wonder position performs unexpectedly, Playmaker Capital 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 Playmaker Capital will offset losses from the drop in Playmaker Capital's long position.| Light Wonder vs. Codere Online Corp | Light Wonder vs. Inspired Entertainment | Light Wonder vs. International Game Technology | Light Wonder vs. Accel Entertainment |
| Playmaker Capital vs. 888 Holdings | Playmaker Capital vs. Real Luck Group | Playmaker Capital vs. Royal Wins | Playmaker Capital vs. Betmakers Technology 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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