Correlation Between Play2Chill and IMC SA
Can any of the company-specific risk be diversified away by investing in both Play2Chill and IMC SA 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 IMC SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Play2Chill SA and IMC SA, you can compare the effects of market volatilities on Play2Chill and IMC SA 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 IMC SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Play2Chill and IMC SA.
Diversification Opportunities for Play2Chill and IMC SA
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Play2Chill and IMC is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Play2Chill SA and IMC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMC SA 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 IMC SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMC SA has no effect on the direction of Play2Chill i.e., Play2Chill and IMC SA go up and down completely randomly.
Pair Corralation between Play2Chill and IMC SA
Assuming the 90 days trading horizon Play2Chill SA is expected to under-perform the IMC SA. In addition to that, Play2Chill is 1.22 times more volatile than IMC SA. It trades about 0.0 of its total potential returns per unit of risk. IMC SA is currently generating about 0.02 per unit of volatility. If you would invest 1,580 in IMC SA on September 14, 2024 and sell it today you would earn a total of 50.00 from holding IMC SA or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.34% |
| Values | Daily Returns |
Play2Chill SA vs. IMC SA
Performance |
| Timeline |
| Play2Chill SA |
| IMC SA |
Play2Chill and IMC SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Play2Chill and IMC SA
The main advantage of trading using opposite Play2Chill and IMC SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Play2Chill position performs unexpectedly, IMC SA 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 IMC SA will offset losses from the drop in IMC SA's long position.| Play2Chill vs. NGG | Play2Chill vs. Asseco Business Solutions | Play2Chill vs. Asseco South Eastern | Play2Chill vs. HM Inwest SA |
| IMC SA vs. Play2Chill SA | IMC SA vs. Quantum Software SA | IMC SA vs. True Games Syndicate | IMC SA vs. MCI Management 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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