Correlation Between WISH Old and Skillz Platform
Can any of the company-specific risk be diversified away by investing in both WISH Old and Skillz Platform 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 WISH Old and Skillz Platform into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WISH Old and Skillz Platform, you can compare the effects of market volatilities on WISH Old and Skillz Platform 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 WISH Old with a short position of Skillz Platform. Check out your portfolio center. Please also check ongoing floating volatility patterns of WISH Old and Skillz Platform.
Diversification Opportunities for WISH Old and Skillz Platform
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between WISH and Skillz is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding WISH Old and Skillz Platform in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skillz Platform and WISH Old 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 WISH Old are associated (or correlated) with Skillz Platform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skillz Platform has no effect on the direction of WISH Old i.e., WISH Old and Skillz Platform go up and down completely randomly.
Pair Corralation between WISH Old and Skillz Platform
Given the investment horizon of 90 days WISH Old is expected to under-perform the Skillz Platform. But the stock apears to be less risky and, when comparing its historical volatility, WISH Old is 1.14 times less risky than Skillz Platform. The stock trades about -0.04 of its potential returns per unit of risk. The Skillz Platform is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 684.00 in Skillz Platform on August 27, 2024 and sell it today you would lose (137.00) from holding Skillz Platform or give up 20.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 46.81% |
| Values | Daily Returns |
WISH Old vs. Skillz Platform
Performance |
| Timeline |
| WISH Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Skillz Platform |
WISH Old and Skillz Platform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WISH Old and Skillz Platform
The main advantage of trading using opposite WISH Old and Skillz Platform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WISH Old position performs unexpectedly, Skillz Platform 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 Skillz Platform will offset losses from the drop in Skillz Platform's long position.| WISH Old vs. Global E Online | WISH Old vs. PDD Holdings | WISH Old vs. Sea | WISH Old vs. Vipshop Holdings Limited |
| Skillz Platform vs. Bilibili | Skillz Platform vs. Take Two Interactive Software | Skillz Platform vs. NetEase | Skillz Platform vs. Roblox 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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