Correlation Between Play2Chill and E Shopping
Can any of the company-specific risk be diversified away by investing in both Play2Chill and E Shopping 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 E Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Play2Chill SA and E shopping Group SA, you can compare the effects of market volatilities on Play2Chill and E Shopping 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 E Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Play2Chill and E Shopping.
Diversification Opportunities for Play2Chill and E Shopping
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Play2Chill and ESG is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Play2Chill SA and E shopping Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E shopping Group 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 E Shopping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E shopping Group has no effect on the direction of Play2Chill i.e., Play2Chill and E Shopping go up and down completely randomly.
Pair Corralation between Play2Chill and E Shopping
Assuming the 90 days trading horizon Play2Chill SA is expected to generate 0.27 times more return on investment than E Shopping. However, Play2Chill SA is 3.66 times less risky than E Shopping. It trades about 0.02 of its potential returns per unit of risk. E shopping Group SA is currently generating about 0.0 per unit of risk. If you would invest 420.00 in Play2Chill SA on October 17, 2024 and sell it today you would earn a total of 4.00 from holding Play2Chill SA or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Play2Chill SA vs. E shopping Group SA
Performance |
| Timeline |
| Play2Chill SA |
| E shopping Group |
Play2Chill and E Shopping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Play2Chill and E Shopping
The main advantage of trading using opposite Play2Chill and E Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Play2Chill position performs unexpectedly, E Shopping 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 E Shopping will offset losses from the drop in E Shopping's long position.| Play2Chill vs. Quantum Software SA | Play2Chill vs. Creotech Instruments SA | Play2Chill vs. CI Games SA | Play2Chill vs. Pyramid Games SA |
| E Shopping vs. MW Trade SA | E Shopping vs. M Food SA | E Shopping vs. Play2Chill SA | E Shopping vs. PLAYWAY 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |