Correlation Between Thyssenkrupp and PLAYSTUDIOS

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

By analyzing existing cross correlation between thyssenkrupp AG and PLAYSTUDIOS A DL 0001, you can compare the effects of market volatilities on Thyssenkrupp and PLAYSTUDIOS 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 Thyssenkrupp with a short position of PLAYSTUDIOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thyssenkrupp and PLAYSTUDIOS.

Diversification Opportunities for Thyssenkrupp and PLAYSTUDIOS

-0.59

Correlation Coefficient

Thyssenkrupp  PLAYSTUDIOS

Excellent diversification

The 3 months correlation between Thyssenkrupp and PLAYSTUDIOS is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding thyssenkrupp AG and PLAYSTUDIOS A DL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYSTUDIOS A DL and Thyssenkrupp 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 thyssenkrupp AG are associated (or correlated) with PLAYSTUDIOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYSTUDIOS A DL has no effect on the direction of Thyssenkrupp i.e., Thyssenkrupp and PLAYSTUDIOS go up and down completely randomly.

Pair Corralation between Thyssenkrupp and PLAYSTUDIOS

Assuming the 90 days trading horizon thyssenkrupp AG is expected to generate 1.58 times more return on investment than PLAYSTUDIOS. However, Thyssenkrupp is 1.58 times more volatile than PLAYSTUDIOS A DL 0001. It trades about 0.31 of its potential returns per unit of risk. PLAYSTUDIOS A DL 0001 is currently generating about -0.2 per unit of risk. If you would invest  381.00  in thyssenkrupp AG on December 26, 2024 and sell it today you would earn a total of  573.00  from holding thyssenkrupp AG or generate 150.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

thyssenkrupp AG  vs.  PLAYSTUDIOS A DL 0001

thyssenkrupp AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in thyssenkrupp AG are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Thyssenkrupp exhibited solid returns over the last few months and may actually be approaching a breakup point.

PLAYSTUDIOS A DL

Risk-Adjusted Performance

Very Weak

Over the last 90 days PLAYSTUDIOS A DL 0001 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 April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Thyssenkrupp and PLAYSTUDIOS

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

The idea behind thyssenkrupp AG and PLAYSTUDIOS A DL 0001 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.