Correlation Between PLAYTIKA HOLDING and Auto Trader
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and Auto Trader 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 PLAYTIKA HOLDING and Auto Trader into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYTIKA HOLDING DL 01 and Auto Trader Group, you can compare the effects of market volatilities on PLAYTIKA HOLDING and Auto Trader 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 PLAYTIKA HOLDING with a short position of Auto Trader. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and Auto Trader.
Diversification Opportunities for PLAYTIKA HOLDING and Auto Trader
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PLAYTIKA and Auto is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and Auto Trader Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auto Trader Group and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING DL 01 are associated (or correlated) with Auto Trader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auto Trader Group has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and Auto Trader go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and Auto Trader
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the Auto Trader. In addition to that, PLAYTIKA HOLDING is 1.65 times more volatile than Auto Trader Group. It trades about 0.0 of its total potential returns per unit of risk. Auto Trader Group is currently generating about 0.06 per unit of volatility. If you would invest 668.00 in Auto Trader Group on September 19, 2024 and sell it today you would earn a total of 322.00 from holding Auto Trader Group or generate 48.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. Auto Trader Group
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| Auto Trader Group |
PLAYTIKA HOLDING and Auto Trader Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and Auto Trader
The main advantage of trading using opposite PLAYTIKA HOLDING and Auto Trader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, Auto Trader 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 Auto Trader will offset losses from the drop in Auto Trader's long position.| PLAYTIKA HOLDING vs. NEXON Co | PLAYTIKA HOLDING vs. Take Two Interactive Software | PLAYTIKA HOLDING vs. Superior Plus Corp | PLAYTIKA HOLDING vs. SIVERS SEMICONDUCTORS AB |
| Auto Trader vs. GungHo Online Entertainment | Auto Trader vs. SCANSOURCE | Auto Trader vs. YATRA ONLINE DL 0001 | Auto Trader vs. PPHE HOTEL GROUP |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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