Correlation Between Playtika Holding and Enersys

Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Enersys 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 Enersys 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 Enersys, you can compare the effects of market volatilities on Playtika Holding and Enersys 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 Enersys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Enersys.

Diversification Opportunities for Playtika Holding and Enersys

-0.22

Correlation Coefficient

Playtika Holding  Enersys

Very good diversification

The 3 months correlation between Playtika and Enersys is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Enersys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enersys 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 Enersys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enersys has no effect on the direction of Playtika Holding i.e., Playtika Holding and Enersys go up and down completely randomly.

Pair Corralation between Playtika Holding and Enersys

Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Enersys. In addition to that, Playtika Holding is 1.59 times more volatile than Enersys. It trades about -0.48 of its total potential returns per unit of risk. Enersys is currently generating about -0.17 per unit of volatility. If you would invest  9,727  in Enersys on September 23, 2024 and sell it today you would lose (481.00) from holding Enersys or give up 4.94% of portfolio value over 90 days.

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

Playtika Holding Corp  vs.  Enersys

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.

Enersys

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Playtika Holding and Enersys

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

The idea behind Playtika Holding Corp and Enersys 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.