Correlation Between Playtika Holding and Proficient Auto

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

Diversification Opportunities for Playtika Holding and Proficient Auto

0.08

Correlation Coefficient

Playtika Holding  Proficient Auto

Significant diversification

The 3 months correlation between Playtika and Proficient is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Playtika Holding i.e., Playtika Holding and Proficient Auto go up and down completely randomly.

Pair Corralation between Playtika Holding and Proficient Auto

Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Proficient Auto. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 1.72 times less risky than Proficient Auto. The stock trades about -0.19 of its potential returns per unit of risk. The Proficient Auto Logistics, is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  929.00  in Proficient Auto Logistics, on October 7, 2024 and sell it today you would lose (45.00) from holding Proficient Auto Logistics, or give up 4.84% of portfolio value over 90 days.

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

Playtika Holding Corp  vs.  Proficient Auto Logistics,

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.

Proficient Auto Logi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Proficient Auto Logistics, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Playtika Holding and Proficient Auto

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

The idea behind Playtika Holding Corp and Proficient Auto Logistics, 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.