Correlation Between Playtika Holding and Intelligent Bio

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

By analyzing existing cross correlation between Playtika Holding Corp and Intelligent Bio Solutions, you can compare the effects of market volatilities on Playtika Holding and Intelligent Bio 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 Intelligent Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Intelligent Bio.

Diversification Opportunities for Playtika Holding and Intelligent Bio

-0.16

Correlation Coefficient

Playtika Holding  Intelligent Bio

Good diversification

The 3 months correlation between Playtika and Intelligent is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions 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 Corp are associated (or correlated) with Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Playtika Holding i.e., Playtika Holding and Intelligent Bio go up and down completely randomly.

Pair Corralation between Playtika Holding and Intelligent Bio

Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 0.23 times more return on investment than Intelligent Bio. However, Playtika Holding Corp is 4.41 times less risky than Intelligent Bio. It trades about 0.12 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about -0.02 per unit of risk. If you would invest  747.00  in Playtika Holding Corp on September 13, 2024 and sell it today you would earn a total of  80.00  from holding Playtika Holding Corp or generate 10.71% return on investment over 90 days.

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

Playtika Holding Corp  vs.  Intelligent Bio Solutions

Playtika Holding Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Playtika Holding Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Playtika Holding may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Intelligent Bio Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intelligent Bio Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's fundamental drivers remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Playtika Holding and Intelligent Bio

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

The idea behind Playtika Holding Corp and Intelligent Bio Solutions 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.