Correlation Between PLAYWAY SA and KION Group

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

By analyzing existing cross correlation between PLAYWAY SA ZY 10 and KION Group AG, you can compare the effects of market volatilities on PLAYWAY SA and KION Group 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 PLAYWAY SA with a short position of KION Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWAY SA and KION Group.

Diversification Opportunities for PLAYWAY SA and KION Group

0.26

Correlation Coefficient

PLAYWAY SA  KION Group

Modest diversification

The 3 months correlation between PLAYWAY and KION is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWAY SA ZY 10 and KION Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KION Group AG and PLAYWAY SA 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 PLAYWAY SA ZY 10 are associated (or correlated) with KION Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KION Group AG has no effect on the direction of PLAYWAY SA i.e., PLAYWAY SA and KION Group go up and down completely randomly.

Pair Corralation between PLAYWAY SA and KION Group

Assuming the 90 days horizon PLAYWAY SA is expected to generate 4.15 times less return on investment than KION Group. In addition to that, PLAYWAY SA is 1.06 times more volatile than KION Group AG. It trades about 0.07 of its total potential returns per unit of risk. KION Group AG is currently generating about 0.32 per unit of volatility. If you would invest  3,342  in KION Group AG on April 20, 2025 and sell it today you would earn a total of  1,698  from holding KION Group AG or generate 50.81% return on investment over 90 days.

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

PLAYWAY SA ZY 10  vs.  KION Group AG

PLAYWAY SA ZY

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PLAYWAY SA ZY 10 are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, PLAYWAY SA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

KION Group AG

Risk-Adjusted Performance

Solid

Over the last 90 days KION Group AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak basic indicators, KION Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PLAYWAY SA and KION Group

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

The idea behind PLAYWAY SA ZY 10 and KION Group AG 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.