Correlation Between PLAYWAY SA and Mercator Medical
Can any of the company-specific risk be diversified away by investing in both PLAYWAY SA and Mercator Medical 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 Mercator Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYWAY SA and Mercator Medical SA, you can compare the effects of market volatilities on PLAYWAY SA and Mercator Medical 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 Mercator Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWAY SA and Mercator Medical.
Diversification Opportunities for PLAYWAY SA and Mercator Medical
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PLAYWAY and Mercator is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWAY SA and Mercator Medical SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercator Medical 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 Mercator Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercator Medical has no effect on the direction of PLAYWAY SA i.e., PLAYWAY SA and Mercator Medical go up and down completely randomly.
Pair Corralation between PLAYWAY SA and Mercator Medical
Assuming the 90 days trading horizon PLAYWAY SA is expected to generate 0.65 times more return on investment than Mercator Medical. However, PLAYWAY SA is 1.53 times less risky than Mercator Medical. It trades about -0.06 of its potential returns per unit of risk. Mercator Medical SA is currently generating about -0.08 per unit of risk. If you would invest 27,950 in PLAYWAY SA on September 15, 2024 and sell it today you would lose (650.00) from holding PLAYWAY SA or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYWAY SA vs. Mercator Medical SA
Performance |
| Timeline |
| PLAYWAY SA |
| Mercator Medical |
PLAYWAY SA and Mercator Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYWAY SA and Mercator Medical
The main advantage of trading using opposite PLAYWAY SA and Mercator Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYWAY SA position performs unexpectedly, Mercator Medical 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 Mercator Medical will offset losses from the drop in Mercator Medical's long position.| PLAYWAY SA vs. CD PROJEKT SA | PLAYWAY SA vs. TEN SQUARE GAMES | PLAYWAY SA vs. CI Games SA | PLAYWAY SA vs. Movie Games SA |
| Mercator Medical vs. Quantum Software SA | Mercator Medical vs. BNP Paribas Bank | Mercator Medical vs. UniCredit SpA | Mercator Medical 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 Stocks Directory module to find actively traded stocks across global markets.
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