Correlation Between Snail, and Playtika Holding

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

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

Diversification Opportunities for Snail, and Playtika Holding

0.72

Correlation Coefficient

Snail,  Playtika Holding

Poor diversification

The 3 months correlation between Snail, and Playtika is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Snail, Class A 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 Snail, 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 Snail, Class A 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 Snail, i.e., Snail, and Playtika Holding go up and down completely randomly.

Pair Corralation between Snail, and Playtika Holding

Given the investment horizon of 90 days Snail, Class A is expected to under-perform the Playtika Holding. In addition to that, Snail, is 2.18 times more volatile than Playtika Holding Corp. It trades about -0.05 of its total potential returns per unit of risk. Playtika Holding Corp is currently generating about -0.09 per unit of volatility. If you would invest  690.00  in Playtika Holding Corp on December 29, 2024 and sell it today you would lose (170.00) from holding Playtika Holding Corp or give up 24.64% of portfolio value over 90 days.

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

Snail, Class A  vs.  Playtika Holding Corp

Snail, Class A

Risk-Adjusted Performance

Very Weak

Over the last 90 days Snail, Class A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Playtika Holding Corp

Risk-Adjusted Performance

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 April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Snail, and Playtika Holding

The main advantage of trading using opposite Snail, and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snail, 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 Snail, Class A 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.

Check out your portfolio center.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.