Correlation Between AECOM TECHNOLOGY and PLAYSTUDIOS

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

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

Diversification Opportunities for AECOM TECHNOLOGY and PLAYSTUDIOS

0.76

Correlation Coefficient

AECOM TECHNOLOGY  PLAYSTUDIOS

Poor diversification

The 3 months correlation between AECOM and PLAYSTUDIOS is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding AECOM TECHNOLOGY 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 AECOM TECHNOLOGY 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 AECOM TECHNOLOGY 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 AECOM TECHNOLOGY i.e., AECOM TECHNOLOGY and PLAYSTUDIOS go up and down completely randomly.

Pair Corralation between AECOM TECHNOLOGY and PLAYSTUDIOS

Assuming the 90 days trading horizon AECOM TECHNOLOGY is expected to generate 2.65 times less return on investment than PLAYSTUDIOS. But when comparing it to its historical volatility, AECOM TECHNOLOGY is 2.17 times less risky than PLAYSTUDIOS. It trades about 0.13 of its potential returns per unit of risk. PLAYSTUDIOS A DL 0001 is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  132.00  in PLAYSTUDIOS A DL 0001 on September 23, 2024 and sell it today you would earn a total of  52.00  from holding PLAYSTUDIOS A DL 0001 or generate 39.39% return on investment over 90 days.

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

AECOM TECHNOLOGY  vs.  PLAYSTUDIOS A DL 0001

AECOM TECHNOLOGY

Risk-Adjusted Performance

10 of 100

OK

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

PLAYSTUDIOS A DL

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PLAYSTUDIOS A DL 0001 are ranked lower than 12 (%) 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 AECOM TECHNOLOGY and PLAYSTUDIOS

The main advantage of trading using opposite AECOM TECHNOLOGY and PLAYSTUDIOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AECOM TECHNOLOGY 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 AECOM TECHNOLOGY 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.