Correlation Between Playtika Holding and ATMOS

Can any of the company-specific risk be diversified away by investing in both Playtika Holding and ATMOS 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 ATMOS 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 ATMOS ENERGY P, you can compare the effects of market volatilities on Playtika Holding and ATMOS 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 ATMOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and ATMOS.

Diversification Opportunities for Playtika Holding and ATMOS

0.18

Correlation Coefficient

Playtika Holding  ATMOS

Average diversification

The 3 months correlation between Playtika and ATMOS is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and ATMOS ENERGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMOS ENERGY P 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 ATMOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMOS ENERGY P has no effect on the direction of Playtika Holding i.e., Playtika Holding and ATMOS go up and down completely randomly.

Pair Corralation between Playtika Holding and ATMOS

Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the ATMOS. In addition to that, Playtika Holding is 5.95 times more volatile than ATMOS ENERGY P. It trades about -0.01 of its total potential returns per unit of risk. ATMOS ENERGY P is currently generating about 0.01 per unit of volatility. If you would invest  9,386  in ATMOS ENERGY P on September 25, 2024 and sell it today you would earn a total of  58.00  from holding ATMOS ENERGY P or generate 0.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	76.41%
Values	Daily Returns

Playtika Holding Corp  vs.  ATMOS ENERGY P

Playtika Holding Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Playtika Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

ATMOS ENERGY P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATMOS ENERGY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ATMOS is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Playtika Holding and ATMOS

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

The idea behind Playtika Holding Corp and ATMOS ENERGY P 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.