Correlation Between PLAYSTUDIOS and AURUBIS AG

Can any of the company-specific risk be diversified away by investing in both PLAYSTUDIOS and AURUBIS AG 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 AURUBIS AG 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 AURUBIS AG UNSPADR, you can compare the effects of market volatilities on PLAYSTUDIOS and AURUBIS AG 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 AURUBIS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYSTUDIOS and AURUBIS AG.

Diversification Opportunities for PLAYSTUDIOS and AURUBIS AG

0.75

Correlation Coefficient

PLAYSTUDIOS  AURUBIS AG

Poor diversification

The 3 months correlation between PLAYSTUDIOS and AURUBIS is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding PLAYSTUDIOS A DL 0001 and AURUBIS AG UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AURUBIS AG UNSPADR 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 AURUBIS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AURUBIS AG UNSPADR has no effect on the direction of PLAYSTUDIOS i.e., PLAYSTUDIOS and AURUBIS AG go up and down completely randomly.

Pair Corralation between PLAYSTUDIOS and AURUBIS AG

Assuming the 90 days horizon PLAYSTUDIOS A DL 0001 is expected to generate 1.57 times more return on investment than AURUBIS AG. However, PLAYSTUDIOS is 1.57 times more volatile than AURUBIS AG UNSPADR. It trades about 0.31 of its potential returns per unit of risk. AURUBIS AG UNSPADR is currently generating about 0.01 per unit of risk. If you would invest  151.00  in PLAYSTUDIOS A DL 0001 on September 21, 2024 and sell it today you would earn a total of  46.00  from holding PLAYSTUDIOS A DL 0001 or generate 30.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

PLAYSTUDIOS A DL 0001  vs.  AURUBIS AG UNSPADR

PLAYSTUDIOS A DL

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PLAYSTUDIOS A DL 0001 are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, PLAYSTUDIOS reported solid returns over the last few months and may actually be approaching a breakup point.

AURUBIS AG UNSPADR

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AURUBIS AG UNSPADR are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AURUBIS AG reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PLAYSTUDIOS and AURUBIS AG

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

The idea behind PLAYSTUDIOS A DL 0001 and AURUBIS AG UNSPADR 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.