Correlation Between Wicket Gaming and Papaya Growth
Can any of the company-specific risk be diversified away by investing in both Wicket Gaming and Papaya Growth 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 Wicket Gaming and Papaya Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wicket Gaming AB and Papaya Growth Opportunity, you can compare the effects of market volatilities on Wicket Gaming and Papaya Growth 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 Wicket Gaming with a short position of Papaya Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wicket Gaming and Papaya Growth.
Diversification Opportunities for Wicket Gaming and Papaya Growth
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wicket and Papaya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wicket Gaming AB and Papaya Growth Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Papaya Growth Opportunity and Wicket Gaming 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 Wicket Gaming AB are associated (or correlated) with Papaya Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Papaya Growth Opportunity has no effect on the direction of Wicket Gaming i.e., Wicket Gaming and Papaya Growth go up and down completely randomly.
Pair Corralation between Wicket Gaming and Papaya Growth
Assuming the 90 days horizon Wicket Gaming AB is expected to under-perform the Papaya Growth. In addition to that, Wicket Gaming is 3.1 times more volatile than Papaya Growth Opportunity. It trades about -0.06 of its total potential returns per unit of risk. Papaya Growth Opportunity is currently generating about 0.02 per unit of volatility. If you would invest 1,040 in Papaya Growth Opportunity on August 31, 2024 and sell it today you would earn a total of 79.00 from holding Papaya Growth Opportunity or generate 7.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.33% |
| Values | Daily Returns |
Wicket Gaming AB vs. Papaya Growth Opportunity
Performance |
| Timeline |
| Wicket Gaming AB |
| Papaya Growth Opportunity |
Wicket Gaming and Papaya Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wicket Gaming and Papaya Growth
The main advantage of trading using opposite Wicket Gaming and Papaya Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wicket Gaming position performs unexpectedly, Papaya Growth 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 Papaya Growth will offset losses from the drop in Papaya Growth's long position.| Wicket Gaming vs. CD Projekt SA | Wicket Gaming vs. Sega Sammy Holdings | Wicket Gaming vs. Playtika Holding Corp | Wicket Gaming vs. Square Enix Holdings |
| Papaya Growth vs. Dominos Pizza | Papaya Growth vs. GEN Restaurant Group, | Papaya Growth vs. Texas Roadhouse | Papaya Growth vs. GameStop Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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