Correlation Between PLAYTIKA HOLDING and GRENKELEASING Dusseldorf

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

Diversification Opportunities for PLAYTIKA HOLDING and GRENKELEASING Dusseldorf

0.41

Correlation Coefficient

PLAYTIKA HOLDING  GRENKELEASING Dusseldorf

Very weak diversification

The 3 months correlation between PLAYTIKA and GRENKELEASING is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and GRENKELEASING Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRENKELEASING Dusseldorf has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and GRENKELEASING Dusseldorf go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and GRENKELEASING Dusseldorf

Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the GRENKELEASING Dusseldorf. But the stock apears to be less risky and, when comparing its historical volatility, PLAYTIKA HOLDING DL 01 is 1.1 times less risky than GRENKELEASING Dusseldorf. The stock trades about -0.28 of its potential returns per unit of risk. The GRENKELEASING Dusseldorf is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  1,536  in GRENKELEASING Dusseldorf on December 26, 2024 and sell it today you would lose (102.00) from holding GRENKELEASING Dusseldorf or give up 6.64% of portfolio value over 90 days.

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

PLAYTIKA HOLDING DL 01  vs.  GRENKELEASING Dusseldorf

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.

GRENKELEASING Dusseldorf

Risk-Adjusted Performance

Very Weak

Over the last 90 days GRENKELEASING Dusseldorf has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking indicators, GRENKELEASING Dusseldorf is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with PLAYTIKA HOLDING and GRENKELEASING Dusseldorf

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

The idea behind PLAYTIKA HOLDING DL 01 and GRENKELEASING Dusseldorf 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..