Correlation Between Lion Biotechnologies and PLAYSTUDIOS

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

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

Diversification Opportunities for Lion Biotechnologies and PLAYSTUDIOS

-0.43

Correlation Coefficient

Lion Biotechnologies  PLAYSTUDIOS

Very good diversification

The 3 months correlation between Lion and PLAYSTUDIOS is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Lion Biotechnologies 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 Lion Biotechnologies 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 Lion Biotechnologies 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 Lion Biotechnologies i.e., Lion Biotechnologies and PLAYSTUDIOS go up and down completely randomly.

Pair Corralation between Lion Biotechnologies and PLAYSTUDIOS

Assuming the 90 days trading horizon Lion Biotechnologies is expected to under-perform the PLAYSTUDIOS. In addition to that, Lion Biotechnologies is 1.26 times more volatile than PLAYSTUDIOS A DL 0001. It trades about -0.04 of its total potential returns per unit of risk. PLAYSTUDIOS A DL 0001 is currently generating about 0.35 per unit of volatility. If you would invest  127.00  in PLAYSTUDIOS A DL 0001 on September 1, 2024 and sell it today you would earn a total of  43.00  from holding PLAYSTUDIOS A DL 0001 or generate 33.86% return on investment over 90 days.

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

Lion Biotechnologies  vs.  PLAYSTUDIOS A DL 0001

Lion Biotechnologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lion Biotechnologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

PLAYSTUDIOS A DL

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PLAYSTUDIOS A DL 0001 are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, PLAYSTUDIOS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lion Biotechnologies and PLAYSTUDIOS

The main advantage of trading using opposite Lion Biotechnologies and PLAYSTUDIOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Biotechnologies 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 Lion Biotechnologies 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.

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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.