Correlation Between 446150AX2 and Playtika Holding

Can any of the company-specific risk be diversified away by investing in both 446150AX2 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 446150AX2 and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HBAN 2487 15 AUG 36 and Playtika Holding Corp, you can compare the effects of market volatilities on 446150AX2 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 446150AX2 with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of 446150AX2 and Playtika Holding.

Diversification Opportunities for 446150AX2 and Playtika Holding

0.52

Correlation Coefficient

446150AX2  Playtika Holding

Very weak diversification

The 3 months correlation between 446150AX2 and Playtika is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding HBAN 2487 15 AUG 36 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 446150AX2 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 HBAN 2487 15 AUG 36 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 446150AX2 i.e., 446150AX2 and Playtika Holding go up and down completely randomly.

Pair Corralation between 446150AX2 and Playtika Holding

Assuming the 90 days trading horizon HBAN 2487 15 AUG 36 is expected to generate 0.47 times more return on investment than Playtika Holding. However, HBAN 2487 15 AUG 36 is 2.14 times less risky than Playtika Holding. It trades about -0.11 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about -0.1 per unit of risk. If you would invest  8,127  in HBAN 2487 15 AUG 36 on October 4, 2024 and sell it today you would lose (314.00) from holding HBAN 2487 15 AUG 36 or give up 3.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	63.49%
Values	Daily Returns

HBAN 2487 15 AUG 36  vs.  Playtika Holding Corp

HBAN 2487 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HBAN 2487 15 AUG 36 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 446150AX2 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the 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 446150AX2 and Playtika Holding

The main advantage of trading using opposite 446150AX2 and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 446150AX2 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 HBAN 2487 15 AUG 36 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.