Correlation Between Playtech Plc and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both Playtech Plc and AIM ImmunoTech 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 Playtech Plc and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtech Plc and AIM ImmunoTech, you can compare the effects of market volatilities on Playtech Plc and AIM ImmunoTech 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 Playtech Plc with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtech Plc and AIM ImmunoTech.
Diversification Opportunities for Playtech Plc and AIM ImmunoTech
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playtech and AIM is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Playtech Plc and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and Playtech Plc 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 Playtech Plc are associated (or correlated) with AIM ImmunoTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM ImmunoTech has no effect on the direction of Playtech Plc i.e., Playtech Plc and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between Playtech Plc and AIM ImmunoTech
Assuming the 90 days trading horizon Playtech Plc is expected to generate 0.13 times more return on investment than AIM ImmunoTech. However, Playtech Plc is 7.96 times less risky than AIM ImmunoTech. It trades about 0.03 of its potential returns per unit of risk. AIM ImmunoTech is currently generating about -0.06 per unit of risk. If you would invest 72,600 in Playtech Plc on September 1, 2024 and sell it today you would earn a total of 300.00 from holding Playtech Plc or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtech Plc vs. AIM ImmunoTech
Performance |
| Timeline |
| Playtech Plc |
| AIM ImmunoTech |
Playtech Plc and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtech Plc and AIM ImmunoTech
The main advantage of trading using opposite Playtech Plc and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtech Plc position performs unexpectedly, AIM ImmunoTech 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 AIM ImmunoTech will offset losses from the drop in AIM ImmunoTech's long position.| Playtech Plc vs. Planet Fitness Cl | Playtech Plc vs. Abingdon Health Plc | Playtech Plc vs. Primary Health Properties | Playtech Plc vs. Dalata Hotel Group |
| AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Diversified Energy |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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