Correlation Between Play2Chill and Carlson Investments
Can any of the company-specific risk be diversified away by investing in both Play2Chill and Carlson Investments 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 Play2Chill and Carlson Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Play2Chill SA and Carlson Investments SA, you can compare the effects of market volatilities on Play2Chill and Carlson Investments 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 Play2Chill with a short position of Carlson Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Play2Chill and Carlson Investments.
Diversification Opportunities for Play2Chill and Carlson Investments
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Play2Chill and Carlson is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Play2Chill SA and Carlson Investments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlson Investments and Play2Chill 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 Play2Chill SA are associated (or correlated) with Carlson Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlson Investments has no effect on the direction of Play2Chill i.e., Play2Chill and Carlson Investments go up and down completely randomly.
Pair Corralation between Play2Chill and Carlson Investments
Assuming the 90 days trading horizon Play2Chill SA is expected to generate 0.69 times more return on investment than Carlson Investments. However, Play2Chill SA is 1.46 times less risky than Carlson Investments. It trades about 0.0 of its potential returns per unit of risk. Carlson Investments SA is currently generating about -0.07 per unit of risk. If you would invest 590.00 in Play2Chill SA on August 29, 2024 and sell it today you would lose (149.00) from holding Play2Chill SA or give up 25.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.55% |
| Values | Daily Returns |
Play2Chill SA vs. Carlson Investments SA
Performance |
| Timeline |
| Play2Chill SA |
| Carlson Investments |
Play2Chill and Carlson Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Play2Chill and Carlson Investments
The main advantage of trading using opposite Play2Chill and Carlson Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Play2Chill position performs unexpectedly, Carlson Investments 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 Carlson Investments will offset losses from the drop in Carlson Investments' long position.| Play2Chill vs. NGG | Play2Chill vs. Asseco Business Solutions | Play2Chill vs. Detalion Games SA | Play2Chill vs. CFI Holding SA |
| Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Detalion Games SA | Carlson Investments vs. CFI Holding SA |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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