Correlation Between Playtech Plc and LPKF Laser
Can any of the company-specific risk be diversified away by investing in both Playtech Plc and LPKF Laser 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 Playtech Plc and LPKF Laser into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtech Plc and LPKF Laser Electronics, you can compare the effects of market volatilities on Playtech Plc and LPKF Laser 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 Playtech Plc with a short position of LPKF Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtech Plc and LPKF Laser.
Diversification Opportunities for Playtech Plc and LPKF Laser
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Playtech and LPKF is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Playtech Plc and LPKF Laser Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LPKF Laser Electronics and Playtech Plc 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 Playtech Plc are associated (or correlated) with LPKF Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LPKF Laser Electronics has no effect on the direction of Playtech Plc i.e., Playtech Plc and LPKF Laser go up and down completely randomly.
Pair Corralation between Playtech Plc and LPKF Laser
Assuming the 90 days trading horizon Playtech Plc is expected to under-perform the LPKF Laser. In addition to that, Playtech Plc is 1.67 times more volatile than LPKF Laser Electronics. It trades about -0.24 of its total potential returns per unit of risk. LPKF Laser Electronics is currently generating about -0.23 per unit of volatility. If you would invest 806.00 in LPKF Laser Electronics on August 13, 2025 and sell it today you would lose (219.00) from holding LPKF Laser Electronics or give up 27.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Playtech Plc vs. LPKF Laser Electronics
Performance |
| Timeline |
| Playtech Plc |
| LPKF Laser Electronics |
Playtech Plc and LPKF Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtech Plc and LPKF Laser
The main advantage of trading using opposite Playtech Plc and LPKF Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtech Plc position performs unexpectedly, LPKF Laser 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 LPKF Laser will offset losses from the drop in LPKF Laser's long position.| Playtech Plc vs. Micron Technology | Playtech Plc vs. Premier Foods PLC | Playtech Plc vs. Spotify Technology SA | Playtech Plc vs. Auction Technology Group |
| LPKF Laser vs. Impax Environmental Markets | LPKF Laser vs. Beeks Trading | LPKF Laser vs. Canadian General Investments | LPKF Laser vs. Tavistock Investments Plc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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