Correlation Between Freeport and Playtech Plc
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By analyzing existing cross correlation between Freeport McMoRan 5 percent and Playtech plc, you can compare the effects of market volatilities on Freeport and Playtech Plc 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 Freeport with a short position of Playtech Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freeport and Playtech Plc.
Diversification Opportunities for Freeport and Playtech Plc
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Freeport and Playtech is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Freeport McMoRan 5 percent and Playtech plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtech plc and Freeport 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 Freeport McMoRan 5 percent are associated (or correlated) with Playtech Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtech plc has no effect on the direction of Freeport i.e., Freeport and Playtech Plc go up and down completely randomly.
Pair Corralation between Freeport and Playtech Plc
Assuming the 90 days trading horizon Freeport McMoRan 5 percent is expected to under-perform the Playtech Plc. But the bond apears to be less risky and, when comparing its historical volatility, Freeport McMoRan 5 percent is 5.09 times less risky than Playtech Plc. The bond trades about -0.05 of its potential returns per unit of risk. The Playtech plc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 782.00 in Playtech plc on September 26, 2024 and sell it today you would earn a total of 161.00 from holding Playtech plc or generate 20.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
Freeport McMoRan 5 percent vs. Playtech plc
Performance |
Timeline |
Freeport McMoRan 5 |
Playtech plc |
Freeport and Playtech Plc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Freeport and Playtech Plc
The main advantage of trading using opposite Freeport and Playtech Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freeport position performs unexpectedly, Playtech Plc 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 Playtech Plc will offset losses from the drop in Playtech Plc's long position.Freeport vs. Playtech plc | Freeport vs. MACOM Technology Solutions | Freeport vs. KLA Tencor | Freeport vs. BRP Inc |
Playtech Plc vs. NiSource | Playtech Plc vs. Kenon Holdings | Playtech Plc vs. Kinetik Holdings | Playtech Plc vs. Ross Stores |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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