Correlation Between Playtech Plc and ProSiebenSat1 Media

Can any of the company-specific risk be diversified away by investing in both Playtech Plc and ProSiebenSat1 Media 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 ProSiebenSat1 Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Playtech plc and ProSiebenSat1 Media SE, you can compare the effects of market volatilities on Playtech Plc and ProSiebenSat1 Media 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 ProSiebenSat1 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtech Plc and ProSiebenSat1 Media.

Diversification Opportunities for Playtech Plc and ProSiebenSat1 Media

0.0

Correlation Coefficient

Playtech Plc  ProSiebenSat1 Media

Pay attention - limited upside

The 3 months correlation between Playtech and ProSiebenSat1 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Playtech plc and ProSiebenSat1 Media SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProSiebenSat1 Media 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 ProSiebenSat1 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProSiebenSat1 Media has no effect on the direction of Playtech Plc i.e., Playtech Plc and ProSiebenSat1 Media go up and down completely randomly.

Pair Corralation between Playtech Plc and ProSiebenSat1 Media

If you would invest  0.00  in ProSiebenSat1 Media SE on October 9, 2024 and sell it today you would earn a total of  0.00  from holding ProSiebenSat1 Media SE or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Playtech plc  vs.  ProSiebenSat1 Media SE

Playtech plc

Risk-Adjusted Performance

0 of 100

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

ProSiebenSat1 Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProSiebenSat1 Media SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ProSiebenSat1 Media is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Playtech Plc and ProSiebenSat1 Media

The main advantage of trading using opposite Playtech Plc and ProSiebenSat1 Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtech Plc position performs unexpectedly, ProSiebenSat1 Media 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 ProSiebenSat1 Media will offset losses from the drop in ProSiebenSat1 Media's long position.

The idea behind Playtech plc and ProSiebenSat1 Media SE 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.