Correlation Between PLAYWAY SA and E Xim
Can any of the company-specific risk be diversified away by investing in both PLAYWAY SA and E Xim 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 PLAYWAY SA and E Xim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYWAY SA and E Xim IT, you can compare the effects of market volatilities on PLAYWAY SA and E Xim 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 PLAYWAY SA with a short position of E Xim. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWAY SA and E Xim.
Diversification Opportunities for PLAYWAY SA and E Xim
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PLAYWAY and EXM is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWAY SA and E Xim IT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Xim IT and PLAYWAY SA 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 PLAYWAY SA are associated (or correlated) with E Xim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Xim IT has no effect on the direction of PLAYWAY SA i.e., PLAYWAY SA and E Xim go up and down completely randomly.
Pair Corralation between PLAYWAY SA and E Xim
Assuming the 90 days trading horizon PLAYWAY SA is expected to generate 17.37 times less return on investment than E Xim. But when comparing it to its historical volatility, PLAYWAY SA is 2.63 times less risky than E Xim. It trades about 0.04 of its potential returns per unit of risk. E Xim IT is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 14,700 in E Xim IT on September 12, 2024 and sell it today you would earn a total of 1,500 from holding E Xim IT or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 40.91% |
| Values | Daily Returns |
PLAYWAY SA vs. E Xim IT
Performance |
| Timeline |
| PLAYWAY SA |
| E Xim IT |
PLAYWAY SA and E Xim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYWAY SA and E Xim
The main advantage of trading using opposite PLAYWAY SA and E Xim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYWAY SA position performs unexpectedly, E Xim 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 Xim will offset losses from the drop in E Xim's long position.| PLAYWAY SA vs. Carlson Investments SA | PLAYWAY SA vs. Tower Investments SA | PLAYWAY SA vs. Mercator Medical SA | PLAYWAY SA vs. M Food SA |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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