Correlation Between PT Global and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both PT Global 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 PT Global and PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Global Mediacom and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on PT Global 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 PT Global with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Global and PLAYTIKA HOLDING.
Diversification Opportunities for PT Global and PLAYTIKA HOLDING
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 06L and PLAYTIKA is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding PT Global Mediacom 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 PT Global 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 PT Global Mediacom 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 PT Global i.e., PT Global and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between PT Global and PLAYTIKA HOLDING
If you would invest 715.00 in PLAYTIKA HOLDING DL 01 on September 3, 2024 and sell it today you would earn a total of 65.00 from holding PLAYTIKA HOLDING DL 01 or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Global Mediacom vs. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| PT Global Mediacom |
| PLAYTIKA HOLDING |
PT Global and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Global and PLAYTIKA HOLDING
The main advantage of trading using opposite PT Global and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Global 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 PT Global Mediacom 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.| PLAYTIKA HOLDING vs. HK Electric Investments | PLAYTIKA HOLDING vs. REGAL ASIAN INVESTMENTS | PLAYTIKA HOLDING vs. China Resources Beer | PLAYTIKA HOLDING vs. Japan Asia 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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