Correlation Between PLAYTIKA HOLDING and GRIFFIN MINING

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

Diversification Opportunities for PLAYTIKA HOLDING and GRIFFIN MINING

-0.56

Correlation Coefficient

PLAYTIKA HOLDING  GRIFFIN MINING

Excellent diversification

The 3 months correlation between PLAYTIKA and GRIFFIN is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and GRIFFIN MINING go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and GRIFFIN MINING

Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the GRIFFIN MINING. In addition to that, PLAYTIKA HOLDING is 1.24 times more volatile than GRIFFIN MINING LTD. It trades about -0.12 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.08 per unit of volatility. If you would invest  174.00  in GRIFFIN MINING LTD on December 29, 2024 and sell it today you would earn a total of  23.00  from holding GRIFFIN MINING LTD or generate 13.22% return on investment over 90 days.

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

PLAYTIKA HOLDING DL 01  vs.  GRIFFIN MINING LTD

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 fragile 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.

GRIFFIN MINING LTD

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GRIFFIN MINING LTD are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, GRIFFIN MINING reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PLAYTIKA HOLDING and GRIFFIN MINING

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

The idea behind PLAYTIKA HOLDING DL 01 and GRIFFIN MINING LTD 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.