Correlation Between Playtech Plc and Inflection Point

Can any of the company-specific risk be diversified away by investing in both Playtech Plc and Inflection Point 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 Playtech Plc and Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Playtech plc and Inflection Point Acquisition, you can compare the effects of market volatilities on Playtech Plc and Inflection Point 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 Playtech Plc with a short position of Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtech Plc and Inflection Point.

Diversification Opportunities for Playtech Plc and Inflection Point

0.18

Correlation Coefficient

Playtech Plc  Inflection Point

Average diversification

The 3 months correlation between Playtech and Inflection is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Playtech plc and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq and Playtech Plc 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 Playtech plc are associated (or correlated) with Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Playtech Plc i.e., Playtech Plc and Inflection Point go up and down completely randomly.

Pair Corralation between Playtech Plc and Inflection Point

Assuming the 90 days horizon Playtech plc is expected to generate 0.34 times more return on investment than Inflection Point. However, Playtech plc is 2.95 times less risky than Inflection Point. It trades about -0.04 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about -0.07 per unit of risk. If you would invest  943.00  in Playtech plc on December 23, 2024 and sell it today you would lose (43.00) from holding Playtech plc or give up 4.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	90.16%
Values	Daily Returns

Playtech plc  vs.  Inflection Point Acquisition

Playtech plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Playtech plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Playtech Plc is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Inflection Point Acq

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inflection Point Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Playtech Plc and Inflection Point

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

The idea behind Playtech plc and Inflection Point Acquisition 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.