Correlation Between Playtika Holding and Willscot Mobile

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

Diversification Opportunities for Playtika Holding and Willscot Mobile

0.44

Correlation Coefficient

Playtika Holding  Willscot Mobile

Very weak diversification

The 3 months correlation between Playtika and Willscot is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Willscot Mobile Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willscot Mobile Mini 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 Willscot Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willscot Mobile Mini has no effect on the direction of Playtika Holding i.e., Playtika Holding and Willscot Mobile go up and down completely randomly.

Pair Corralation between Playtika Holding and Willscot Mobile

Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Willscot Mobile. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 1.15 times less risky than Willscot Mobile. The stock trades about -0.47 of its potential returns per unit of risk. The Willscot Mobile Mini is currently generating about -0.24 of returns per unit of risk over similar time horizon. If you would invest  3,819  in Willscot Mobile Mini on September 28, 2024 and sell it today you would lose (453.00) from holding Willscot Mobile Mini or give up 11.86% of portfolio value over 90 days.

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

Playtika Holding Corp  vs.  Willscot Mobile Mini

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 inconsistent performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Willscot Mobile Mini

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Willscot Mobile Mini has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Willscot Mobile is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Playtika Holding and Willscot Mobile

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

The idea behind Playtika Holding Corp and Willscot Mobile Mini 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.