Correlation Between Playtika Holding and US Global

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

Diversification Opportunities for Playtika Holding and US Global

0.89

Correlation Coefficient

Playtika Holding  US Global

Very poor diversification

The 3 months correlation between Playtika and GROW is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors 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 US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of Playtika Holding i.e., Playtika Holding and US Global go up and down completely randomly.

Pair Corralation between Playtika Holding and US Global

Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the US Global. In addition to that, Playtika Holding is 4.04 times more volatile than US Global Investors. It trades about -0.09 of its total potential returns per unit of risk. US Global Investors is currently generating about -0.08 per unit of volatility. If you would invest  240.00  in US Global Investors on December 28, 2024 and sell it today you would lose (13.00) from holding US Global Investors or give up 5.42% of portfolio value over 90 days.

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

Playtika Holding Corp  vs.  US Global Investors

Playtika Holding Corp

Risk-Adjusted Performance

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 inconsistent performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

US Global Investors

Risk-Adjusted Performance

Very Weak

Over the last 90 days US Global Investors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, US Global is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Playtika Holding and US Global

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

The idea behind Playtika Holding Corp and US Global Investors 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.