Correlation Between Playstudios and Bayer AG
Can any of the company-specific risk be diversified away by investing in both Playstudios and Bayer AG 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 Playstudios and Bayer AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playstudios and Bayer AG, you can compare the effects of market volatilities on Playstudios and Bayer AG 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 Playstudios with a short position of Bayer AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playstudios and Bayer AG.
Diversification Opportunities for Playstudios and Bayer AG
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Playstudios and Bayer is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Playstudios and Bayer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayer AG and Playstudios 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 Playstudios are associated (or correlated) with Bayer AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayer AG has no effect on the direction of Playstudios i.e., Playstudios and Bayer AG go up and down completely randomly.
Pair Corralation between Playstudios and Bayer AG
Given the investment horizon of 90 days Playstudios is expected to under-perform the Bayer AG. In addition to that, Playstudios is 2.0 times more volatile than Bayer AG. It trades about -0.1 of its total potential returns per unit of risk. Bayer AG is currently generating about 0.26 per unit of volatility. If you would invest 2,203 in Bayer AG on November 28, 2024 and sell it today you would earn a total of 206.00 from holding Bayer AG or generate 9.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playstudios vs. Bayer AG
Performance |
| Timeline |
| Playstudios |
| Bayer AG |
Playstudios and Bayer AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playstudios and Bayer AG
The main advantage of trading using opposite Playstudios and Bayer AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playstudios position performs unexpectedly, Bayer AG 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 Bayer AG will offset losses from the drop in Bayer AG's long position.| Playstudios vs. SohuCom | Playstudios vs. Snail, Class A | Playstudios vs. Playtika Holding Corp | Playstudios vs. Golden Matrix Group |
| Bayer AG vs. Space Communication | Bayer AG vs. Gentex | Bayer AG vs. National CineMedia | Bayer AG vs. ioneer Ltd American |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |