Correlation Between Playtika Holding and 437076CH3

Can any of the company-specific risk be diversified away by investing in both Playtika Holding and 437076CH3 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 437076CH3 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 HD 15 15 SEP 28, you can compare the effects of market volatilities on Playtika Holding and 437076CH3 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 437076CH3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and 437076CH3.

Diversification Opportunities for Playtika Holding and 437076CH3

-0.39

Correlation Coefficient

Playtika Holding  437076CH3

Very good diversification

The 3 months correlation between Playtika and 437076CH3 is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and HD 15 15 SEP 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 437076CH3 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 437076CH3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 437076CH3 has no effect on the direction of Playtika Holding i.e., Playtika Holding and 437076CH3 go up and down completely randomly.

Pair Corralation between Playtika Holding and 437076CH3

Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 5.75 times more return on investment than 437076CH3. However, Playtika Holding is 5.75 times more volatile than HD 15 15 SEP 28. It trades about 0.01 of its potential returns per unit of risk. HD 15 15 SEP 28 is currently generating about -0.17 per unit of risk. If you would invest  759.00  in Playtika Holding Corp on September 15, 2024 and sell it today you would earn a total of  4.00  from holding Playtika Holding Corp or generate 0.53% 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.  HD 15 15 SEP 28

Playtika Holding Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Playtika Holding Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Playtika Holding is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

437076CH3

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HD 15 15 SEP 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 437076CH3 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 437076CH3

The main advantage of trading using opposite Playtika Holding and 437076CH3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, 437076CH3 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 437076CH3 will offset losses from the drop in 437076CH3's long position.

The idea behind Playtika Holding Corp and HD 15 15 SEP 28 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.

Check out your portfolio center.

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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.