Correlation Between PLAYTIKA HOLDING and COMPUTER MODELLING

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

Diversification Opportunities for PLAYTIKA HOLDING and COMPUTER MODELLING

-0.14

Correlation Coefficient

PLAYTIKA HOLDING  COMPUTER MODELLING

Good diversification

The 3 months correlation between PLAYTIKA and COMPUTER is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and COMPUTER MODELLING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMPUTER MODELLING 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 COMPUTER MODELLING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMPUTER MODELLING has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and COMPUTER MODELLING go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and COMPUTER MODELLING

Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the COMPUTER MODELLING. In addition to that, PLAYTIKA HOLDING is 12.36 times more volatile than COMPUTER MODELLING. It trades about -0.04 of its total potential returns per unit of risk. COMPUTER MODELLING is currently generating about 0.16 per unit of volatility. If you would invest  375.00  in COMPUTER MODELLING on October 6, 2024 and sell it today you would earn a total of  5.00  from holding COMPUTER MODELLING or generate 1.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.5%
Values	Daily Returns

PLAYTIKA HOLDING DL 01  vs.  COMPUTER MODELLING

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.

COMPUTER MODELLING

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in COMPUTER MODELLING are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward-looking indicators, COMPUTER MODELLING is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with PLAYTIKA HOLDING and COMPUTER MODELLING

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

The idea behind PLAYTIKA HOLDING DL 01 and COMPUTER MODELLING 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.