Correlation Between Playtech Plc and Mattel
Can any of the company-specific risk be diversified away by investing in both Playtech Plc and Mattel 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 Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtech plc and Mattel Inc, you can compare the effects of market volatilities on Playtech Plc and Mattel 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 Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtech Plc and Mattel.
Diversification Opportunities for Playtech Plc and Mattel
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Playtech and Mattel is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Playtech plc and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc 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 Mattel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattel Inc has no effect on the direction of Playtech Plc i.e., Playtech Plc and Mattel go up and down completely randomly.
Pair Corralation between Playtech Plc and Mattel
If you would invest 950.00 in Playtech plc on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Playtech plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtech plc vs. Mattel Inc
Performance |
| Timeline |
| Playtech plc |
| Mattel Inc |
Playtech Plc and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtech Plc and Mattel
The main advantage of trading using opposite Playtech Plc and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtech Plc position performs unexpectedly, Mattel 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 Mattel will offset losses from the drop in Mattel's long position.| Playtech Plc vs. Real Luck Group | Playtech Plc vs. Betmakers Technology Group | Playtech Plc vs. Jackpot Digital |
| Mattel vs. Funko Inc | Mattel vs. JAKKS Pacific | Mattel vs. Madison Square Garden | Mattel vs. Life Time Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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