Correlation Between REGAL ASIAN and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN 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 REGAL ASIAN and PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REGAL ASIAN INVESTMENTS and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on REGAL ASIAN 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 REGAL ASIAN with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and PLAYTIKA HOLDING.
Diversification Opportunities for REGAL ASIAN and PLAYTIKA HOLDING
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between REGAL and PLAYTIKA is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS 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 REGAL ASIAN 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 REGAL ASIAN INVESTMENTS 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 REGAL ASIAN i.e., REGAL ASIAN and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between REGAL ASIAN and PLAYTIKA HOLDING
Assuming the 90 days trading horizon REGAL ASIAN is expected to generate 1.71 times less return on investment than PLAYTIKA HOLDING. But when comparing it to its historical volatility, REGAL ASIAN INVESTMENTS is 1.68 times less risky than PLAYTIKA HOLDING. It trades about 0.02 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 757.00 in PLAYTIKA HOLDING DL 01 on September 3, 2024 and sell it today you would earn a total of 23.00 from holding PLAYTIKA HOLDING DL 01 or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| PLAYTIKA HOLDING |
REGAL ASIAN and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and PLAYTIKA HOLDING
The main advantage of trading using opposite REGAL ASIAN and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN 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.| REGAL ASIAN vs. Ramsay Health Care | REGAL ASIAN vs. Diamondrock Hospitality Co | REGAL ASIAN vs. BW OFFSHORE LTD | REGAL ASIAN vs. AAC TECHNOLOGHLDGADR |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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