Correlation Between PLAYWAY SA and COREBRIDGE FINANCIAL

Can any of the company-specific risk be diversified away by investing in both PLAYWAY SA and COREBRIDGE FINANCIAL 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 PLAYWAY SA and COREBRIDGE FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PLAYWAY SA ZY 10 and COREBRIDGE FINANCIAL INC, you can compare the effects of market volatilities on PLAYWAY SA and COREBRIDGE FINANCIAL 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 PLAYWAY SA with a short position of COREBRIDGE FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWAY SA and COREBRIDGE FINANCIAL.

Diversification Opportunities for PLAYWAY SA and COREBRIDGE FINANCIAL

0.81

Correlation Coefficient

PLAYWAY SA  COREBRIDGE FINANCIAL

Very poor diversification

The 3 months correlation between PLAYWAY and COREBRIDGE is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWAY SA ZY 10 and COREBRIDGE FINANCIAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COREBRIDGE FINANCIAL INC and PLAYWAY SA 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 PLAYWAY SA ZY 10 are associated (or correlated) with COREBRIDGE FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COREBRIDGE FINANCIAL INC has no effect on the direction of PLAYWAY SA i.e., PLAYWAY SA and COREBRIDGE FINANCIAL go up and down completely randomly.

Pair Corralation between PLAYWAY SA and COREBRIDGE FINANCIAL

Assuming the 90 days horizon PLAYWAY SA is expected to generate 2.31 times less return on investment than COREBRIDGE FINANCIAL. But when comparing it to its historical volatility, PLAYWAY SA ZY 10 is 1.06 times less risky than COREBRIDGE FINANCIAL. It trades about 0.03 of its potential returns per unit of risk. COREBRIDGE FINANCIAL INC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,798  in COREBRIDGE FINANCIAL INC on December 23, 2024 and sell it today you would earn a total of  182.00  from holding COREBRIDGE FINANCIAL INC or generate 6.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

PLAYWAY SA ZY 10  vs.  COREBRIDGE FINANCIAL INC

PLAYWAY SA ZY

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PLAYWAY SA ZY 10 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, PLAYWAY SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

COREBRIDGE FINANCIAL INC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in COREBRIDGE FINANCIAL INC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, COREBRIDGE FINANCIAL may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with PLAYWAY SA and COREBRIDGE FINANCIAL

The main advantage of trading using opposite PLAYWAY SA and COREBRIDGE FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYWAY SA position performs unexpectedly, COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL will offset losses from the drop in COREBRIDGE FINANCIAL's long position.

The idea behind PLAYWAY SA ZY 10 and COREBRIDGE FINANCIAL INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.