Correlation Between Playtech Plc and ATHENE HOLDING

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

By analyzing existing cross correlation between Playtech plc and ATHENE HOLDING PRFSERC, you can compare the effects of market volatilities on Playtech Plc and ATHENE 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 Playtech Plc with a short position of ATHENE HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtech Plc and ATHENE HOLDING.

Diversification Opportunities for Playtech Plc and ATHENE HOLDING

0.13

Correlation Coefficient

Playtech Plc  ATHENE HOLDING

Average diversification

The 3 months correlation between Playtech and ATHENE is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Playtech plc and ATHENE HOLDING PRFSERC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATHENE HOLDING PRFSERC and Playtech Plc 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 Playtech plc are associated (or correlated) with ATHENE HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATHENE HOLDING PRFSERC has no effect on the direction of Playtech Plc i.e., Playtech Plc and ATHENE HOLDING go up and down completely randomly.

Pair Corralation between Playtech Plc and ATHENE HOLDING

Assuming the 90 days trading horizon Playtech plc is expected to under-perform the ATHENE HOLDING. In addition to that, Playtech Plc is 1.24 times more volatile than ATHENE HOLDING PRFSERC. It trades about -0.09 of its total potential returns per unit of risk. ATHENE HOLDING PRFSERC is currently generating about 0.2 per unit of volatility. If you would invest  2,203  in ATHENE HOLDING PRFSERC on October 4, 2024 and sell it today you would earn a total of  177.00  from holding ATHENE HOLDING PRFSERC or generate 8.03% return on investment over 90 days.

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

Playtech plc  vs.  ATHENE HOLDING PRFSERC

Playtech plc

Risk-Adjusted Performance

0 of 100

Very Weak

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

ATHENE HOLDING PRFSERC

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ATHENE HOLDING PRFSERC are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, ATHENE HOLDING may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Playtech Plc and ATHENE HOLDING

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

The idea behind Playtech plc and ATHENE HOLDING PRFSERC 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.