Correlation Between Meiwu Technology and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Playtika Holding 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 Meiwu Technology and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meiwu Technology Co and Playtika Holding Corp, you can compare the effects of market volatilities on Meiwu Technology and Playtika Holding 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 Meiwu Technology with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Playtika Holding.
Diversification Opportunities for Meiwu Technology and Playtika Holding
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Meiwu and Playtika is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp and Meiwu Technology 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 Meiwu Technology Co are associated (or correlated) with Playtika Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtika Holding Corp has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Playtika Holding go up and down completely randomly.
Pair Corralation between Meiwu Technology and Playtika Holding
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the Playtika Holding. In addition to that, Meiwu Technology is 3.3 times more volatile than Playtika Holding Corp. It trades about -0.01 of its total potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.01 per unit of volatility. If you would invest 888.00 in Playtika Holding Corp on August 31, 2024 and sell it today you would lose (46.00) from holding Playtika Holding Corp or give up 5.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Meiwu Technology Co vs. Playtika Holding Corp
Performance |
| Timeline |
| Meiwu Technology |
| Playtika Holding Corp |
Meiwu Technology and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Playtika Holding
The main advantage of trading using opposite Meiwu Technology and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Playtika Holding 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 Playtika Holding will offset losses from the drop in Playtika Holding's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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