Correlation Between Playstudios and Regency Centers

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

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

Diversification Opportunities for Playstudios and Regency Centers

0.31

Correlation Coefficient

Playstudios  Regency Centers

Weak diversification

The 3 months correlation between Playstudios and Regency is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Playstudios and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers 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 Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of Playstudios i.e., Playstudios and Regency Centers go up and down completely randomly.

Pair Corralation between Playstudios and Regency Centers

Given the investment horizon of 90 days Playstudios is expected to under-perform the Regency Centers. In addition to that, Playstudios is 3.01 times more volatile than Regency Centers. It trades about -0.05 of its total potential returns per unit of risk. Regency Centers is currently generating about -0.15 per unit of volatility. If you would invest  2,420  in Regency Centers on December 4, 2024 and sell it today you would lose (82.00) from holding Regency Centers or give up 3.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Playstudios  vs.  Regency Centers

Playstudios

Risk-Adjusted Performance

Very Weak

Over the last 90 days Playstudios has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Regency Centers

Risk-Adjusted Performance

Very Weak

Over the last 90 days Regency Centers has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Regency Centers is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Playstudios and Regency Centers

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

The idea behind Playstudios and Regency Centers 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.