Correlation Between Playtika Holding and 126307BB2

Can any of the company-specific risk be diversified away by investing in both Playtika Holding and 126307BB2 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 126307BB2 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 CSC Holdings 4125, you can compare the effects of market volatilities on Playtika Holding and 126307BB2 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 126307BB2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and 126307BB2.

Diversification Opportunities for Playtika Holding and 126307BB2

0.55

Correlation Coefficient

Playtika Holding  126307BB2

Very weak diversification

The 3 months correlation between Playtika and 126307BB2 is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and CSC Holdings 4125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSC Holdings 4125 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 126307BB2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSC Holdings 4125 has no effect on the direction of Playtika Holding i.e., Playtika Holding and 126307BB2 go up and down completely randomly.

Pair Corralation between Playtika Holding and 126307BB2

Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 1.23 times more return on investment than 126307BB2. However, Playtika Holding is 1.23 times more volatile than CSC Holdings 4125. It trades about 0.12 of its potential returns per unit of risk. CSC Holdings 4125 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 Together
Strength	Weak
Accuracy	76.19%
Values	Daily Returns

Playtika Holding Corp  vs.  CSC Holdings 4125

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.

CSC Holdings 4125

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CSC Holdings 4125 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 126307BB2 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Playtika Holding and 126307BB2

The main advantage of trading using opposite Playtika Holding and 126307BB2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, 126307BB2 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 126307BB2 will offset losses from the drop in 126307BB2's long position.

The idea behind Playtika Holding Corp and CSC Holdings 4125 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 Stocks Directory module to find actively traded stocks across global markets.