Correlation Between Playstudios and Anterix

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

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

Diversification Opportunities for Playstudios and Anterix

-0.21

Correlation Coefficient

Playstudios  Anterix

Very good diversification

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

Pair Corralation between Playstudios and Anterix

Given the investment horizon of 90 days Playstudios is expected to generate 1.89 times more return on investment than Anterix. However, Playstudios is 1.89 times more volatile than Anterix. It trades about 0.19 of its potential returns per unit of risk. Anterix is currently generating about -0.11 per unit of risk. 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

Playstudios  vs.  Anterix

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.

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.

Pair Trading with Playstudios and Anterix

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

The idea behind Playstudios and Anterix 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 CEOs Directory module to screen CEOs from public companies around the world.