Correlation Between Chalice Mining and PLAYTIKA HOLDING

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

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

Diversification Opportunities for Chalice Mining and PLAYTIKA HOLDING

-0.49

Correlation Coefficient

Chalice Mining  PLAYTIKA HOLDING

Very good diversification

The 3 months correlation between Chalice and PLAYTIKA is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Chalice Mining Limited 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 Chalice Mining 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 Chalice Mining Limited 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 Chalice Mining i.e., Chalice Mining and PLAYTIKA HOLDING go up and down completely randomly.

Pair Corralation between Chalice Mining and PLAYTIKA HOLDING

Assuming the 90 days horizon Chalice Mining Limited is expected to generate 1.94 times more return on investment than PLAYTIKA HOLDING. However, Chalice Mining is 1.94 times more volatile than PLAYTIKA HOLDING DL 01. It trades about 0.07 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about -0.25 per unit of risk. If you would invest  66.00  in Chalice Mining Limited on December 27, 2024 and sell it today you would earn a total of  10.00  from holding Chalice Mining Limited or generate 15.15% return on investment over 90 days.

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

Chalice Mining Limited  vs.  PLAYTIKA HOLDING DL 01

Chalice Mining

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Chalice Mining Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Chalice Mining reported solid returns over the last few months and may actually be approaching a breakup point.

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 Chalice Mining and PLAYTIKA HOLDING

The main advantage of trading using opposite Chalice Mining and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chalice Mining 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 Chalice Mining Limited 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.