Correlation Between Serina Therapeutics and Playtika Holding

Can any of the company-specific risk be diversified away by investing in both Serina Therapeutics and Playtika Holding 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 Serina Therapeutics and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Serina Therapeutics and Playtika Holding Corp, you can compare the effects of market volatilities on Serina Therapeutics and Playtika Holding 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 Serina Therapeutics with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Serina Therapeutics and Playtika Holding.

Diversification Opportunities for Serina Therapeutics and Playtika Holding

-0.33

Correlation Coefficient

Serina Therapeutics  Playtika Holding

Very good diversification

The 3 months correlation between Serina and Playtika is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Serina Therapeutics and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp and Serina Therapeutics 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 Serina Therapeutics are associated (or correlated) with Playtika Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtika Holding Corp has no effect on the direction of Serina Therapeutics i.e., Serina Therapeutics and Playtika Holding go up and down completely randomly.

Pair Corralation between Serina Therapeutics and Playtika Holding

Considering the 90-day investment horizon Serina Therapeutics is expected to under-perform the Playtika Holding. In addition to that, Serina Therapeutics is 2.84 times more volatile than Playtika Holding Corp. It trades about -0.01 of its total potential returns per unit of risk. Playtika Holding Corp is currently generating about -0.01 per unit of volatility. If you would invest  913.00  in Playtika Holding Corp on October 3, 2024 and sell it today you would lose (219.00) from holding Playtika Holding Corp or give up 23.99% of portfolio value over 90 days.

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

Serina Therapeutics  vs.  Playtika Holding Corp

Serina Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Serina Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

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.

Pair Trading with Serina Therapeutics and Playtika Holding

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

The idea behind Serina Therapeutics and Playtika Holding Corp 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.