Correlation Between Playmaker Capital and Canterbury Park

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

By analyzing existing cross correlation between Playmaker Capital and Canterbury Park Holding, you can compare the effects of market volatilities on Playmaker Capital and Canterbury Park 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 Playmaker Capital with a short position of Canterbury Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playmaker Capital and Canterbury Park.

Diversification Opportunities for Playmaker Capital and Canterbury Park

0.12

Correlation Coefficient

Playmaker Capital  Canterbury Park

Average diversification

The 3 months correlation between Playmaker and Canterbury is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Playmaker Capital and Canterbury Park Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canterbury Park Holding and Playmaker Capital 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 Playmaker Capital are associated (or correlated) with Canterbury Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canterbury Park Holding has no effect on the direction of Playmaker Capital i.e., Playmaker Capital and Canterbury Park go up and down completely randomly.

Pair Corralation between Playmaker Capital and Canterbury Park

If you would invest  1,950  in Canterbury Park Holding on September 19, 2024 and sell it today you would earn a total of  143.00  from holding Canterbury Park Holding or generate 7.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Playmaker Capital  vs.  Canterbury Park Holding

Playmaker Capital

Risk-Adjusted Performance

0 of 100

Very Weak

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

Canterbury Park Holding

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Canterbury Park Holding are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical indicators, Canterbury Park exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Playmaker Capital and Canterbury Park

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

The idea behind Playmaker Capital and Canterbury Park Holding 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.