Correlation Between Playtika Holding and GD Culture
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and GD Culture 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 GD Culture 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 GD Culture Group, you can compare the effects of market volatilities on Playtika Holding and GD Culture 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 GD Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and GD Culture.
Diversification Opportunities for Playtika Holding and GD Culture
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playtika and GDC is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and GD Culture Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GD Culture Group 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 GD Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GD Culture Group has no effect on the direction of Playtika Holding i.e., Playtika Holding and GD Culture go up and down completely randomly.
Pair Corralation between Playtika Holding and GD Culture
Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the GD Culture. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 1.7 times less risky than GD Culture. The stock trades about -0.09 of its potential returns per unit of risk. The GD Culture Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 193.00 in GD Culture Group on December 28, 2024 and sell it today you would earn a total of 67.00 from holding GD Culture Group or generate 34.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Playtika Holding Corp vs. GD Culture Group
Performance |
Timeline |
Playtika Holding Corp |
GD Culture Group |
Playtika Holding and GD Culture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Playtika Holding and GD Culture
The main advantage of trading using opposite Playtika Holding and GD Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, GD Culture 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 GD Culture will offset losses from the drop in GD Culture's long position.Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
GD Culture vs. Blue Hat Interactive | GD Culture vs. Playstudios | GD Culture vs. Motorsport Gaming Us | GD Culture vs. Alpha Esports Tech |
Check out your portfolio center.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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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