Correlation Between Playtika Holding and KEYBANK

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

Diversification Opportunities for Playtika Holding and KEYBANK

0.3

Correlation Coefficient

Playtika Holding  KEYBANK

Weak diversification

The 3 months correlation between Playtika and KEYBANK is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and KEYBANK NATL ASSN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYBANK NATL ASSN 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 KEYBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEYBANK NATL ASSN has no effect on the direction of Playtika Holding i.e., Playtika Holding and KEYBANK go up and down completely randomly.

Pair Corralation between Playtika Holding and KEYBANK

Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 1.02 times more return on investment than KEYBANK. However, Playtika Holding is 1.02 times more volatile than KEYBANK NATL ASSN. It trades about -0.19 of its potential returns per unit of risk. KEYBANK NATL ASSN is currently generating about -0.29 per unit of risk. If you would invest  821.00  in Playtika Holding Corp on October 7, 2024 and sell it today you would lose (121.00) from holding Playtika Holding Corp or give up 14.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	41.46%
Values	Daily Returns

Playtika Holding Corp  vs.  KEYBANK NATL ASSN

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.

KEYBANK NATL ASSN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KEYBANK NATL ASSN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain 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 KEYBANK NATL ASSN investors.

Pair Trading with Playtika Holding and KEYBANK

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

The idea behind Playtika Holding Corp and KEYBANK NATL ASSN 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.