Correlation Between Playtika Holding and Marblegate Acquisition

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

Diversification Opportunities for Playtika Holding and Marblegate Acquisition

0.5

Correlation Coefficient

Playtika Holding  Marblegate Acquisition

Very weak diversification

The 3 months correlation between Playtika and Marblegate is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition 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 Marblegate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marblegate Acquisition has no effect on the direction of Playtika Holding i.e., Playtika Holding and Marblegate Acquisition go up and down completely randomly.

Pair Corralation between Playtika Holding and Marblegate Acquisition

Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Marblegate Acquisition. In addition to that, Playtika Holding is 4.26 times more volatile than Marblegate Acquisition Corp. It trades about -0.24 of its total potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about -0.22 per unit of volatility. If you would invest  1,125  in Marblegate Acquisition Corp on September 17, 2024 and sell it today you would lose (24.00) from holding Marblegate Acquisition Corp or give up 2.13% of portfolio value over 90 days.

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

Playtika Holding Corp  vs.  Marblegate Acquisition Corp

Playtika Holding Corp

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Playtika Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Playtika Holding is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Marblegate Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Playtika Holding and Marblegate Acquisition

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

The idea behind Playtika Holding Corp and Marblegate Acquisition 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.