Correlation Between PLAYTIKA HOLDING and Easy Software

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

Diversification Opportunities for PLAYTIKA HOLDING and Easy Software

-0.33

Correlation Coefficient

PLAYTIKA HOLDING  Easy Software

Very good diversification

The 3 months correlation between PLAYTIKA and Easy is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and Easy Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easy Software AG 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 Easy Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easy Software AG has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and Easy Software go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and Easy Software

Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the Easy Software. In addition to that, PLAYTIKA HOLDING is 1.19 times more volatile than Easy Software AG. It trades about -0.23 of its total potential returns per unit of risk. Easy Software AG is currently generating about 0.0 per unit of volatility. If you would invest  1,860  in Easy Software AG on December 22, 2024 and sell it today you would lose (40.00) from holding Easy Software AG or give up 2.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PLAYTIKA HOLDING DL 01  vs.  Easy Software AG

PLAYTIKA HOLDING

Risk-Adjusted Performance

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 unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Easy Software AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Easy Software AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Easy Software is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with PLAYTIKA HOLDING and Easy Software

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

The idea behind PLAYTIKA HOLDING DL 01 and Easy Software AG 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.