Correlation Between Socit Gnrale and PLAYTIKA HOLDING

Can any of the company-specific risk be diversified away by investing in both Socit Gnrale 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 Socit Gnrale and PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Socit Gnrale Socit and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on Socit Gnrale 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 Socit Gnrale with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Socit Gnrale and PLAYTIKA HOLDING.

Diversification Opportunities for Socit Gnrale and PLAYTIKA HOLDING

-0.24

Correlation Coefficient

Socit Gnrale  PLAYTIKA HOLDING

Very good diversification

The 3 months correlation between Socit and PLAYTIKA is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Socit Gnrale Socit and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING and Socit Gnrale 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 Socit Gnrale Socit 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 has no effect on the direction of Socit Gnrale i.e., Socit Gnrale and PLAYTIKA HOLDING go up and down completely randomly.

Pair Corralation between Socit Gnrale and PLAYTIKA HOLDING

Assuming the 90 days trading horizon Socit Gnrale Socit is expected to generate 0.92 times more return on investment than PLAYTIKA HOLDING. However, Socit Gnrale Socit is 1.08 times less risky than PLAYTIKA HOLDING. It trades about 0.18 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about -0.01 per unit of risk. If you would invest  2,372  in Socit Gnrale Socit on October 25, 2024 and sell it today you would earn a total of  560.00  from holding Socit Gnrale Socit or generate 23.61% return on investment over 90 days.

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

Socit Gnrale Socit  vs.  PLAYTIKA HOLDING DL 01

Socit Gnrale Socit

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Socit Gnrale Socit are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Socit Gnrale unveiled solid returns over the last few months and may actually be approaching a breakup point.

PLAYTIKA HOLDING

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PLAYTIKA HOLDING DL 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PLAYTIKA HOLDING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Socit Gnrale and PLAYTIKA HOLDING

The main advantage of trading using opposite Socit Gnrale and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Socit Gnrale 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 Socit Gnrale Socit and PLAYTIKA HOLDING DL 01 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.