Correlation Between PLAYSTUDIOS and Amgen

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

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

Diversification Opportunities for PLAYSTUDIOS and Amgen

-0.81

Correlation Coefficient

PLAYSTUDIOS  Amgen

Pay attention - limited upside

The 3 months correlation between PLAYSTUDIOS and Amgen is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding PLAYSTUDIOS A DL 0001 and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and PLAYSTUDIOS 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 PLAYSTUDIOS A DL 0001 are associated (or correlated) with Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of PLAYSTUDIOS i.e., PLAYSTUDIOS and Amgen go up and down completely randomly.

Pair Corralation between PLAYSTUDIOS and Amgen

Assuming the 90 days horizon PLAYSTUDIOS A DL 0001 is expected to generate 1.64 times more return on investment than Amgen. However, PLAYSTUDIOS is 1.64 times more volatile than Amgen Inc. It trades about 0.14 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.09 per unit of risk. If you would invest  149.00  in PLAYSTUDIOS A DL 0001 on September 18, 2024 and sell it today you would earn a total of  50.00  from holding PLAYSTUDIOS A DL 0001 or generate 33.56% return on investment over 90 days.

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

PLAYSTUDIOS A DL 0001  vs.  Amgen Inc

PLAYSTUDIOS A DL

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PLAYSTUDIOS A DL 0001 are ranked lower than 11 (%) 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.

Amgen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with PLAYSTUDIOS and Amgen

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

The idea behind PLAYSTUDIOS A DL 0001 and Amgen Inc 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.