Correlation Between Playtika Holding and ICC Holdings

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

Diversification Opportunities for Playtika Holding and ICC Holdings

0.2

Correlation Coefficient

Playtika Holding  ICC Holdings

Modest diversification

The 3 months correlation between Playtika and ICC is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and ICC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICC Holdings 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 ICC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICC Holdings has no effect on the direction of Playtika Holding i.e., Playtika Holding and ICC Holdings go up and down completely randomly.

Pair Corralation between Playtika Holding and ICC Holdings

Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the ICC Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 28.61 times less risky than ICC Holdings. The stock trades about -0.01 of its potential returns per unit of risk. The ICC Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,600  in ICC Holdings on September 19, 2024 and sell it today you would earn a total of  723.00  from holding ICC Holdings or generate 45.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	76.9%
Values	Daily Returns

Playtika Holding Corp  vs.  ICC Holdings

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.

ICC Holdings

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ICC Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, ICC Holdings is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Playtika Holding and ICC Holdings

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

The idea behind Playtika Holding Corp and ICC Holdings 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 Anywhere module to track or share privately all of your investments from the convenience of any device.