Correlation Between Independence Realty and Playtika Holding

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Can any of the company-specific risk be diversified away by investing in both Independence Realty 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 Independence Realty and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Independence Realty Trust and Playtika Holding Corp, you can compare the effects of market volatilities on Independence Realty 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 Independence Realty with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Independence Realty and Playtika Holding.

Diversification Opportunities for Independence Realty and Playtika Holding

IndependencePlaytikaDiversified AwayIndependencePlaytikaDiversified Away100%
0.68
  Correlation Coefficient

Poor diversification

The 3 months correlation between Independence and Playtika is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Independence Realty Trust 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 Independence Realty 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 Independence Realty Trust 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 Independence Realty i.e., Independence Realty and Playtika Holding go up and down completely randomly.

Pair Corralation between Independence Realty and Playtika Holding

Considering the 90-day investment horizon Independence Realty Trust is expected to generate 0.83 times more return on investment than Playtika Holding. However, Independence Realty Trust is 1.21 times less risky than Playtika Holding. It trades about -0.05 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about -0.09 per unit of risk. If you would invest  1,970  in Independence Realty Trust on October 26, 2024 and sell it today you would lose (103.00) from holding Independence Realty Trust or give up 5.23% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Independence Realty Trust  vs.  Playtika Holding Corp

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-50510
JavaScript chart by amCharts 3.21.15IRT PLTK
       Timeline  
Independence Realty Trust 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Independence Realty Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Independence Realty is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan18.51919.52020.52121.522
Playtika Holding Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan77.588.5

Independence Realty and Playtika Holding Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.44-1.84-1.24-0.64-0.0610.521.111.72.29 0.080.100.120.140.160.18
JavaScript chart by amCharts 3.21.15IRT PLTK
       Returns  

Pair Trading with Independence Realty and Playtika Holding

The main advantage of trading using opposite Independence Realty and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Independence Realty 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 Independence Realty Trust 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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