Correlation Between PLAYTIKA HOLDING and HALSTEAD JAMES

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

By analyzing existing cross correlation between PLAYTIKA HOLDING DL 01 and HALSTEAD JAMES LS 05, you can compare the effects of market volatilities on PLAYTIKA HOLDING and HALSTEAD JAMES 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 PLAYTIKA HOLDING with a short position of HALSTEAD JAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and HALSTEAD JAMES.

Diversification Opportunities for PLAYTIKA HOLDING and HALSTEAD JAMES

0.61

Correlation Coefficient

PLAYTIKA HOLDING  HALSTEAD JAMES

Poor diversification

The 3 months correlation between PLAYTIKA and HALSTEAD is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and HALSTEAD JAMES LS 05 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HALSTEAD JAMES LS and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING DL 01 are associated (or correlated) with HALSTEAD JAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HALSTEAD JAMES LS has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and HALSTEAD JAMES go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and HALSTEAD JAMES

Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the HALSTEAD JAMES. But the stock apears to be less risky and, when comparing its historical volatility, PLAYTIKA HOLDING DL 01 is 1.03 times less risky than HALSTEAD JAMES. The stock trades about 0.0 of its potential returns per unit of risk. The HALSTEAD JAMES LS 05 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  184.00  in HALSTEAD JAMES LS 05 on September 22, 2024 and sell it today you would earn a total of  24.00  from holding HALSTEAD JAMES LS 05 or generate 13.04% return on investment over 90 days.

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

PLAYTIKA HOLDING DL 01  vs.  HALSTEAD JAMES LS 05

PLAYTIKA HOLDING

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PLAYTIKA HOLDING DL 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PLAYTIKA HOLDING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

HALSTEAD JAMES LS

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in HALSTEAD JAMES LS 05 are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward-looking indicators, HALSTEAD JAMES reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PLAYTIKA HOLDING and HALSTEAD JAMES

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

The idea behind PLAYTIKA HOLDING DL 01 and HALSTEAD JAMES LS 05 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 Commodity Directory module to find actively traded commodities issued by global exchanges.