Correlation Between Playtika Holding and COMSovereign Holding

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

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

Diversification Opportunities for Playtika Holding and COMSovereign Holding

-0.05

Correlation Coefficient

Playtika Holding  COMSovereign Holding

Good diversification

The 3 months correlation between Playtika and COMSovereign is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and COMSovereign Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMSovereign Holding Corp and Playtika Holding 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 Playtika Holding Corp are associated (or correlated) with COMSovereign Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMSovereign Holding Corp has no effect on the direction of Playtika Holding i.e., Playtika Holding and COMSovereign Holding go up and down completely randomly.

Pair Corralation between Playtika Holding and COMSovereign Holding

Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the COMSovereign Holding. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 3.39 times less risky than COMSovereign Holding. The stock trades about -0.01 of its potential returns per unit of risk. The COMSovereign Holding Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  275.00  in COMSovereign Holding Corp on October 4, 2024 and sell it today you would lose (60.00) from holding COMSovereign Holding Corp or give up 21.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	26.41%
Values	Daily Returns

Playtika Holding Corp  vs.  COMSovereign Holding Corp

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.

COMSovereign Holding Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days COMSovereign Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, COMSovereign Holding is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Playtika Holding and COMSovereign Holding

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

The idea behind Playtika Holding Corp and COMSovereign 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.