Correlation Between Universal Display and PLAYSTUDIOS

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

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

Diversification Opportunities for Universal Display and PLAYSTUDIOS

-0.67

Correlation Coefficient

Universal Display  PLAYSTUDIOS

Excellent diversification

The 3 months correlation between Universal and PLAYSTUDIOS is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Universal Display 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 Universal Display 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 Universal Display 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 Universal Display i.e., Universal Display and PLAYSTUDIOS go up and down completely randomly.

Pair Corralation between Universal Display and PLAYSTUDIOS

Assuming the 90 days horizon Universal Display is expected to under-perform the PLAYSTUDIOS. But the stock apears to be less risky and, when comparing its historical volatility, Universal Display is 1.28 times less risky than PLAYSTUDIOS. The stock trades about -0.07 of its potential returns per unit of risk. The PLAYSTUDIOS A DL 0001 is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  135.00  in PLAYSTUDIOS A DL 0001 on September 2, 2024 and sell it today you would earn a total of  38.00  from holding PLAYSTUDIOS A DL 0001 or generate 28.15% return on investment over 90 days.

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

Universal Display  vs.  PLAYSTUDIOS A DL 0001

Universal Display

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Universal Display has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

PLAYSTUDIOS A DL

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PLAYSTUDIOS A DL 0001 are ranked lower than 10 (%) 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 Universal Display and PLAYSTUDIOS

The main advantage of trading using opposite Universal Display and PLAYSTUDIOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Display 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 Universal Display 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.