Correlation Between Playstudios and Giga Media
Can any of the company-specific risk be diversified away by investing in both Playstudios and Giga Media 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 Giga Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playstudios and Giga Media, you can compare the effects of market volatilities on Playstudios and Giga Media 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 Giga Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playstudios and Giga Media.
Diversification Opportunities for Playstudios and Giga Media
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Playstudios and Giga is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Playstudios and Giga Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giga Media 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 Giga Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giga Media has no effect on the direction of Playstudios i.e., Playstudios and Giga Media go up and down completely randomly.
Pair Corralation between Playstudios and Giga Media
Given the investment horizon of 90 days Playstudios is expected to generate 1.68 times more return on investment than Giga Media. However, Playstudios is 1.68 times more volatile than Giga Media. It trades about 0.02 of its potential returns per unit of risk. Giga Media is currently generating about -0.22 per unit of risk. If you would invest 177.00 in Playstudios on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Playstudios or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playstudios vs. Giga Media
Performance |
| Timeline |
| Playstudios |
| Giga Media |
Playstudios and Giga Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playstudios and Giga Media
The main advantage of trading using opposite Playstudios and Giga Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playstudios position performs unexpectedly, Giga Media 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 Giga Media will offset losses from the drop in Giga Media's long position.| Playstudios vs. SohuCom | Playstudios vs. Snail, Class A | Playstudios vs. Playtika Holding Corp | Playstudios vs. Golden Matrix Group |
| Giga Media vs. SohuCom | Giga Media vs. Snail, Class A | Giga Media vs. Playstudios | Giga Media vs. Playtika Holding Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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