Correlation Between Playtika Holding and Glacier Bancorp

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

Diversification Opportunities for Playtika Holding and Glacier Bancorp

0.69

Correlation Coefficient

Playtika Holding  Glacier Bancorp

Poor diversification

The 3 months correlation between Playtika and Glacier is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp 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 Glacier Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glacier Bancorp has no effect on the direction of Playtika Holding i.e., Playtika Holding and Glacier Bancorp go up and down completely randomly.

Pair Corralation between Playtika Holding and Glacier Bancorp

Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Glacier Bancorp. In addition to that, Playtika Holding is 1.5 times more volatile than Glacier Bancorp. It trades about -0.38 of its total potential returns per unit of risk. Glacier Bancorp is currently generating about -0.35 per unit of volatility. If you would invest  5,562  in Glacier Bancorp on October 10, 2024 and sell it today you would lose (608.00) from holding Glacier Bancorp or give up 10.93% of portfolio value over 90 days.

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

Playtika Holding Corp  vs.  Glacier Bancorp

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 quite persistent basic indicators, Playtika Holding is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Glacier Bancorp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Glacier Bancorp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile fundamental indicators, Glacier Bancorp may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Playtika Holding and Glacier Bancorp

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

The idea behind Playtika Holding Corp and Glacier Bancorp 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.