Correlation Between E Shopping and PLAYWAY SA
Can any of the company-specific risk be diversified away by investing in both E Shopping and PLAYWAY SA 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 E Shopping and PLAYWAY SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E shopping Group SA and PLAYWAY SA, you can compare the effects of market volatilities on E Shopping and PLAYWAY SA 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 E Shopping with a short position of PLAYWAY SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Shopping and PLAYWAY SA.
Diversification Opportunities for E Shopping and PLAYWAY SA
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ESG and PLAYWAY is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding E shopping Group SA and PLAYWAY SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYWAY SA and E Shopping 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 E shopping Group SA are associated (or correlated) with PLAYWAY SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYWAY SA has no effect on the direction of E Shopping i.e., E Shopping and PLAYWAY SA go up and down completely randomly.
Pair Corralation between E Shopping and PLAYWAY SA
Assuming the 90 days trading horizon E shopping Group SA is expected to under-perform the PLAYWAY SA. In addition to that, E Shopping is 4.62 times more volatile than PLAYWAY SA. It trades about -0.05 of its total potential returns per unit of risk. PLAYWAY SA is currently generating about -0.07 per unit of volatility. If you would invest 32,200 in PLAYWAY SA on October 4, 2024 and sell it today you would lose (4,450) from holding PLAYWAY SA or give up 13.82% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 92.56% |
Values | Daily Returns |
E shopping Group SA vs. PLAYWAY SA
Performance |
Timeline |
E shopping Group |
PLAYWAY SA |
E Shopping and PLAYWAY SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with E Shopping and PLAYWAY SA
The main advantage of trading using opposite E Shopping and PLAYWAY SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Shopping position performs unexpectedly, PLAYWAY SA 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 PLAYWAY SA will offset losses from the drop in PLAYWAY SA's long position.E Shopping vs. Banco Santander SA | E Shopping vs. UniCredit SpA | E Shopping vs. CEZ as | E Shopping vs. Polski Koncern Naftowy |
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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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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