Correlation Between Adstar and Playtika Holding

Can any of the company-specific risk be diversified away by investing in both Adstar and Playtika Holding 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 Adstar and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Adstar Inc and Playtika Holding Corp, you can compare the effects of market volatilities on Adstar and Playtika Holding 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 Adstar with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adstar and Playtika Holding.

Diversification Opportunities for Adstar and Playtika Holding

0.0

Correlation Coefficient

Adstar  Playtika Holding

Pay attention - limited upside

The 3 months correlation between Adstar and Playtika is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Adstar Inc and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp and Adstar 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 Adstar Inc are associated (or correlated) with Playtika Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtika Holding Corp has no effect on the direction of Adstar i.e., Adstar and Playtika Holding go up and down completely randomly.

Pair Corralation between Adstar and Playtika Holding

If you would invest  676.00  in Playtika Holding Corp on October 23, 2024 and sell it today you would earn a total of  26.00  from holding Playtika Holding Corp or generate 3.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Adstar Inc  vs.  Playtika Holding Corp

Adstar Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Playtika Holding Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Playtika Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Adstar and Playtika Holding

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

The idea behind Adstar Inc and Playtika Holding Corp 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.