Correlation Between Playmaker Capital and Gan

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

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

Diversification Opportunities for Playmaker Capital and Gan

0.0

Correlation Coefficient

Playmaker Capital  Gan

Pay attention - limited upside

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

Pair Corralation between Playmaker Capital and Gan

If you would invest (100.00) in Playmaker Capital on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Playmaker Capital or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Playmaker Capital  vs.  Gan

Playmaker Capital

Risk-Adjusted Performance

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.

Gan

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gan has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Gan is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Playmaker Capital and Gan

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

The idea behind Playmaker Capital and Gan 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.