Correlation Between Lamar Advertising and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both Lamar Advertising 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 Lamar Advertising and PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lamar Advertising and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on Lamar Advertising 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 Lamar Advertising with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lamar Advertising and PLAYTIKA HOLDING.
Diversification Opportunities for Lamar Advertising and PLAYTIKA HOLDING
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lamar and PLAYTIKA is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lamar Advertising 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 Lamar Advertising 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 Lamar Advertising 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 Lamar Advertising i.e., Lamar Advertising and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between Lamar Advertising and PLAYTIKA HOLDING
Assuming the 90 days trading horizon Lamar Advertising is expected to generate 1.69 times less return on investment than PLAYTIKA HOLDING. But when comparing it to its historical volatility, Lamar Advertising is 1.58 times less risky than PLAYTIKA HOLDING. It trades about 0.15 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 651.00 in PLAYTIKA HOLDING DL 01 on August 31, 2024 and sell it today you would earn a total of 144.00 from holding PLAYTIKA HOLDING DL 01 or generate 22.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lamar Advertising vs. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| Lamar Advertising |
| PLAYTIKA HOLDING |
Lamar Advertising and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lamar Advertising and PLAYTIKA HOLDING
The main advantage of trading using opposite Lamar Advertising and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lamar Advertising 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.| Lamar Advertising vs. Apple Inc | Lamar Advertising vs. Apple Inc | Lamar Advertising vs. Apple Inc | Lamar Advertising vs. Apple Inc |
| PLAYTIKA HOLDING vs. ALBIS LEASING AG | PLAYTIKA HOLDING vs. CN MODERN DAIRY | PLAYTIKA HOLDING vs. PT Indofood Sukses | PLAYTIKA HOLDING vs. AIR PRODCHEMICALS |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stocks Directory Find actively traded stocks across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |