Correlation Between Play2Chill and Intersport Polska
Can any of the company-specific risk be diversified away by investing in both Play2Chill and Intersport Polska 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 Intersport Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Play2Chill SA and Intersport Polska SA, you can compare the effects of market volatilities on Play2Chill and Intersport Polska 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 Intersport Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Play2Chill and Intersport Polska.
Diversification Opportunities for Play2Chill and Intersport Polska
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Play2Chill and Intersport is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Play2Chill SA and Intersport Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intersport Polska 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 Intersport Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intersport Polska has no effect on the direction of Play2Chill i.e., Play2Chill and Intersport Polska go up and down completely randomly.
Pair Corralation between Play2Chill and Intersport Polska
Assuming the 90 days trading horizon Play2Chill is expected to generate 1.61 times less return on investment than Intersport Polska. But when comparing it to its historical volatility, Play2Chill SA is 1.65 times less risky than Intersport Polska. It trades about 0.04 of its potential returns per unit of risk. Intersport Polska SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 63.00 in Intersport Polska SA on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Intersport Polska SA or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Play2Chill SA vs. Intersport Polska SA
Performance |
| Timeline |
| Play2Chill SA |
| Intersport Polska |
Play2Chill and Intersport Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Play2Chill and Intersport Polska
The main advantage of trading using opposite Play2Chill and Intersport Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Play2Chill position performs unexpectedly, Intersport Polska 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 Intersport Polska will offset losses from the drop in Intersport Polska's long position.| Play2Chill vs. NGG | Play2Chill vs. Asseco Business Solutions | Play2Chill vs. Detalion Games SA | Play2Chill vs. Asseco South Eastern |
| Intersport Polska vs. Movie Games SA | Intersport Polska vs. MW Trade SA | Intersport Polska vs. Alior Bank SA | Intersport Polska vs. Bank Millennium 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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