Correlation Between Lendlease Global and Playtika Holding

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

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

Diversification Opportunities for Lendlease Global and Playtika Holding

0.0

Correlation Coefficient

Lendlease Global  Playtika Holding

Pay attention - limited upside

The 3 months correlation between Lendlease and Playtika is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Global Commercial 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 Lendlease Global 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 Lendlease Global Commercial 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 Lendlease Global i.e., Lendlease Global and Playtika Holding go up and down completely randomly.

Pair Corralation between Lendlease Global and Playtika Holding

If you would invest  45.00  in Lendlease Global Commercial on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Lendlease Global Commercial or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.56%
Values	Daily Returns

Lendlease Global Commercial  vs.  Playtika Holding Corp

Lendlease Global Com

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lendlease Global Commercial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Lendlease Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

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 Lendlease Global and Playtika Holding

The main advantage of trading using opposite Lendlease Global and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease Global 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 Lendlease Global Commercial 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.