Correlation Between PLAYSTUDIOS and CNVISION MEDIA

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

By analyzing existing cross correlation between PLAYSTUDIOS A DL 0001 and CNVISION MEDIA, you can compare the effects of market volatilities on PLAYSTUDIOS and CNVISION MEDIA 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 PLAYSTUDIOS with a short position of CNVISION MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYSTUDIOS and CNVISION MEDIA.

Diversification Opportunities for PLAYSTUDIOS and CNVISION MEDIA

-0.41

Correlation Coefficient

PLAYSTUDIOS  CNVISION MEDIA

Very good diversification

The 3 months correlation between PLAYSTUDIOS and CNVISION is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding PLAYSTUDIOS A DL 0001 and CNVISION MEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNVISION MEDIA and PLAYSTUDIOS 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 PLAYSTUDIOS A DL 0001 are associated (or correlated) with CNVISION MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNVISION MEDIA has no effect on the direction of PLAYSTUDIOS i.e., PLAYSTUDIOS and CNVISION MEDIA go up and down completely randomly.

Pair Corralation between PLAYSTUDIOS and CNVISION MEDIA

Assuming the 90 days horizon PLAYSTUDIOS A DL 0001 is expected to under-perform the CNVISION MEDIA. But the stock apears to be less risky and, when comparing its historical volatility, PLAYSTUDIOS A DL 0001 is 1.41 times less risky than CNVISION MEDIA. The stock trades about -0.13 of its potential returns per unit of risk. The CNVISION MEDIA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  5.75  in CNVISION MEDIA on December 5, 2024 and sell it today you would earn a total of  0.55  from holding CNVISION MEDIA or generate 9.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

PLAYSTUDIOS A DL 0001  vs.  CNVISION MEDIA

PLAYSTUDIOS A DL

Risk-Adjusted Performance

Very Weak

Over the last 90 days PLAYSTUDIOS A DL 0001 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

CNVISION MEDIA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CNVISION MEDIA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, CNVISION MEDIA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PLAYSTUDIOS and CNVISION MEDIA

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

The idea behind PLAYSTUDIOS A DL 0001 and CNVISION MEDIA 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.