Correlation Between PLAYTIKA HOLDING and Eversource Energy

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

Diversification Opportunities for PLAYTIKA HOLDING and Eversource Energy

-0.39

Correlation Coefficient

PLAYTIKA HOLDING  Eversource Energy

Very good diversification

The 3 months correlation between PLAYTIKA and Eversource is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and Eversource Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eversource Energy 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 Eversource Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eversource Energy has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and Eversource Energy go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and Eversource Energy

Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the Eversource Energy. In addition to that, PLAYTIKA HOLDING is 1.43 times more volatile than Eversource Energy. It trades about -0.25 of its total potential returns per unit of risk. Eversource Energy is currently generating about 0.05 per unit of volatility. If you would invest  5,660  in Eversource Energy on December 4, 2024 and sell it today you would earn a total of  240.00  from holding Eversource Energy or generate 4.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

PLAYTIKA HOLDING DL 01  vs.  Eversource Energy

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.

Eversource Energy

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Eversource Energy are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Eversource Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PLAYTIKA HOLDING and Eversource Energy

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

The idea behind PLAYTIKA HOLDING DL 01 and Eversource Energy 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.