Correlation Between 49326EEN9 and Playstudios

Can any of the company-specific risk be diversified away by investing in both 49326EEN9 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 49326EEN9 and Playstudios into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KEY 4789 01 JUN 33 and Playstudios, you can compare the effects of market volatilities on 49326EEN9 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 49326EEN9 with a short position of Playstudios. Check out your portfolio center. Please also check ongoing floating volatility patterns of 49326EEN9 and Playstudios.

Diversification Opportunities for 49326EEN9 and Playstudios

-0.23

Correlation Coefficient

49326EEN9  Playstudios

Very good diversification

The 3 months correlation between 49326EEN9 and Playstudios is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding KEY 4789 01 JUN 33 and Playstudios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playstudios and 49326EEN9 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 KEY 4789 01 JUN 33 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 has no effect on the direction of 49326EEN9 i.e., 49326EEN9 and Playstudios go up and down completely randomly.

Pair Corralation between 49326EEN9 and Playstudios

Assuming the 90 days trading horizon KEY 4789 01 JUN 33 is expected to under-perform the Playstudios. In addition to that, 49326EEN9 is 1.06 times more volatile than Playstudios. It trades about -0.26 of its total potential returns per unit of risk. Playstudios is currently generating about -0.12 per unit of volatility. If you would invest  216.00  in Playstudios on October 8, 2024 and sell it today you would lose (18.50) from holding Playstudios or give up 8.56% of portfolio value over 90 days.

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

KEY 4789 01 JUN 33  vs.  Playstudios

KEY 4789 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KEY 4789 01 JUN 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for KEY 4789 01 JUN 33 investors.

Playstudios

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Playstudios are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Playstudios unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 49326EEN9 and Playstudios

The main advantage of trading using opposite 49326EEN9 and Playstudios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 49326EEN9 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' long position.

The idea behind KEY 4789 01 JUN 33 and Playstudios 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.