Correlation Between ALBIS LEASING and PLAYTIKA HOLDING

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

By analyzing existing cross correlation between ALBIS LEASING AG and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on ALBIS LEASING 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 ALBIS LEASING with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and PLAYTIKA HOLDING.

Diversification Opportunities for ALBIS LEASING and PLAYTIKA HOLDING

0.1

Correlation Coefficient

ALBIS LEASING  PLAYTIKA HOLDING

Average diversification

The 3 months correlation between ALBIS and PLAYTIKA is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING and ALBIS LEASING 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 ALBIS LEASING AG 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 has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and PLAYTIKA HOLDING go up and down completely randomly.

Pair Corralation between ALBIS LEASING and PLAYTIKA HOLDING

Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.16 times more return on investment than PLAYTIKA HOLDING. However, ALBIS LEASING AG is 6.43 times less risky than PLAYTIKA HOLDING. It trades about 0.0 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about -0.11 per unit of risk. If you would invest  274.00  in ALBIS LEASING AG on December 30, 2024 and sell it today you would earn a total of  0.00  from holding ALBIS LEASING AG or generate 0.0% return on investment over 90 days.

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

ALBIS LEASING AG  vs.  PLAYTIKA HOLDING DL 01

ALBIS LEASING AG

Risk-Adjusted Performance

Very Weak

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

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.

Pair Trading with ALBIS LEASING and PLAYTIKA HOLDING

The main advantage of trading using opposite ALBIS LEASING and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING 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 ALBIS LEASING AG and PLAYTIKA HOLDING DL 01 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.