Correlation Between Playtika Holding and Sega Sammy

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

Diversification Opportunities for Playtika Holding and Sega Sammy

-0.22

Correlation Coefficient

Playtika Holding  Sega Sammy

Very good diversification

The 3 months correlation between Playtika and Sega is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Sega Sammy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sega Sammy 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 Sega Sammy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sega Sammy Holdings has no effect on the direction of Playtika Holding i.e., Playtika Holding and Sega Sammy go up and down completely randomly.

Pair Corralation between Playtika Holding and Sega Sammy

Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Sega Sammy. In addition to that, Playtika Holding is 1.63 times more volatile than Sega Sammy Holdings. It trades about -0.18 of its total potential returns per unit of risk. Sega Sammy Holdings is currently generating about 0.05 per unit of volatility. If you would invest  475.00  in Sega Sammy Holdings on December 26, 2024 and sell it today you would earn a total of  23.00  from holding Sega Sammy Holdings or generate 4.84% return on investment over 90 days.

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

Playtika Holding Corp  vs.  Sega Sammy Holdings

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.

Sega Sammy Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sega Sammy Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Sega Sammy may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Playtika Holding and Sega Sammy

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

The idea behind Playtika Holding Corp and Sega Sammy 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.