Correlation Between PLAYTIKA HOLDING and ZENERGY B

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

Diversification Opportunities for PLAYTIKA HOLDING and ZENERGY B

-0.48

Correlation Coefficient

PLAYTIKA HOLDING  ZENERGY B

Very good diversification

The 3 months correlation between PLAYTIKA and ZENERGY is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and ZENERGY B AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZENERGY B AB 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 ZENERGY B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZENERGY B AB has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and ZENERGY B go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and ZENERGY B

Assuming the 90 days horizon PLAYTIKA HOLDING is expected to generate 880.85 times less return on investment than ZENERGY B. But when comparing it to its historical volatility, PLAYTIKA HOLDING DL 01 is 48.79 times less risky than ZENERGY B. It trades about 0.01 of its potential returns per unit of risk. ZENERGY B AB is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  10.00  in ZENERGY B AB on September 17, 2024 and sell it today you would earn a total of  12.00  from holding ZENERGY B AB or generate 120.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.66%
Values	Daily Returns

PLAYTIKA HOLDING DL 01  vs.  ZENERGY B AB

PLAYTIKA HOLDING

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PLAYTIKA HOLDING DL 01 are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, PLAYTIKA HOLDING reported solid returns over the last few months and may actually be approaching a breakup point.

ZENERGY B AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ZENERGY B AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with PLAYTIKA HOLDING and ZENERGY B

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

The idea behind PLAYTIKA HOLDING DL 01 and ZENERGY B AB 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.