Correlation Between Anterix and Playstudios

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

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

Diversification Opportunities for Anterix and Playstudios

-0.21

Correlation Coefficient

Anterix  Playstudios

Very good diversification

The 3 months correlation between Anterix and Playstudios is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Anterix and Playstudios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playstudios and Anterix 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 Anterix are associated (or correlated) with Playstudios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playstudios has no effect on the direction of Anterix i.e., Anterix and Playstudios go up and down completely randomly.

Pair Corralation between Anterix and Playstudios

Given the investment horizon of 90 days Anterix is expected to under-perform the Playstudios. But the stock apears to be less risky and, when comparing its historical volatility, Anterix is 1.89 times less risky than Playstudios. The stock trades about -0.11 of its potential returns per unit of risk. The Playstudios is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  146.00  in Playstudios on October 6, 2024 and sell it today you would earn a total of  49.00  from holding Playstudios or generate 33.56% return on investment over 90 days.

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

Anterix  vs.  Playstudios

Anterix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Playstudios

Risk-Adjusted Performance

10 of 100

OK

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

Pair Trading with Anterix and Playstudios

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

The idea behind Anterix and Playstudios 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 Commodity Directory module to find actively traded commodities issued by global exchanges.