Correlation Between Playtech Plc and Ping An

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Playtech Plc and Ping An 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 Playtech Plc and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtech plc and Ping An Healthcare, you can compare the effects of market volatilities on Playtech Plc and Ping An 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 Playtech Plc with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtech Plc and Ping An.

Diversification Opportunities for Playtech Plc and Ping An

0.07
  Correlation Coefficient

Significant diversification

The 3 months correlation between Playtech and Ping is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Playtech plc and Ping An Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Healthcare and Playtech Plc 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 Playtech plc are associated (or correlated) with Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Healthcare has no effect on the direction of Playtech Plc i.e., Playtech Plc and Ping An go up and down completely randomly.

Pair Corralation between Playtech Plc and Ping An

Assuming the 90 days trading horizon Playtech plc is expected to generate 0.09 times more return on investment than Ping An. However, Playtech plc is 10.61 times less risky than Ping An. It trades about -0.06 of its potential returns per unit of risk. Ping An Healthcare is currently generating about -0.06 per unit of risk. If you would invest  869.00  in Playtech plc on October 10, 2024 and sell it today you would lose (27.00) from holding Playtech plc or give up 3.11% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Playtech plc  vs.  Ping An Healthcare

 Performance 
       Timeline  
Playtech plc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Playtech plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Playtech Plc is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
Ping An Healthcare 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ping An Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Playtech Plc and Ping An Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Playtech Plc and Ping An

The main advantage of trading using opposite Playtech Plc and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtech Plc position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.
The idea behind Playtech plc and Ping An Healthcare 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

Other Complementary Tools

Bonds Directory
Find actively traded corporate debentures issued by US companies
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Global Correlations
Find global opportunities by holding instruments from different markets