Correlation Between Playtika Holding and 44965UAA2

Can any of the company-specific risk be diversified away by investing in both Playtika Holding and 44965UAA2 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 44965UAA2 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 AER 653829 21 DEC 65, you can compare the effects of market volatilities on Playtika Holding and 44965UAA2 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 44965UAA2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and 44965UAA2.

Diversification Opportunities for Playtika Holding and 44965UAA2

0.02

Correlation Coefficient

Playtika Holding  44965UAA2

Significant diversification

The 3 months correlation between Playtika and 44965UAA2 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and AER 653829 21 DEC 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AER 653829 21 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 44965UAA2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AER 653829 21 has no effect on the direction of Playtika Holding i.e., Playtika Holding and 44965UAA2 go up and down completely randomly.

Pair Corralation between Playtika Holding and 44965UAA2

Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 0.4 times more return on investment than 44965UAA2. However, Playtika Holding Corp is 2.51 times less risky than 44965UAA2. It trades about -0.38 of its potential returns per unit of risk. AER 653829 21 DEC 65 is currently generating about -0.3 per unit of risk. If you would invest  861.00  in Playtika Holding Corp on October 10, 2024 and sell it today you would lose (150.00) from holding Playtika Holding Corp or give up 17.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	55.0%
Values	Daily Returns

Playtika Holding Corp  vs.  AER 653829 21 DEC 65

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 quite persistent basic indicators, Playtika Holding is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

AER 653829 21

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AER 653829 21 DEC 65 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for AER 653829 21 DEC 65 investors.

Pair Trading with Playtika Holding and 44965UAA2

The main advantage of trading using opposite Playtika Holding and 44965UAA2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, 44965UAA2 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 44965UAA2 will offset losses from the drop in 44965UAA2's long position.

The idea behind Playtika Holding Corp and AER 653829 21 DEC 65 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.