Correlation Between PLAYTIKA HOLDING and Postal Savings
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and Postal Savings 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 Postal Savings 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 Postal Savings Bank, you can compare the effects of market volatilities on PLAYTIKA HOLDING and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and Postal Savings.
Diversification Opportunities for PLAYTIKA HOLDING and Postal Savings
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PLAYTIKA and Postal is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and Postal Savings go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and Postal Savings
Assuming the 90 days horizon PLAYTIKA HOLDING is expected to generate 7.08 times less return on investment than Postal Savings. But when comparing it to its historical volatility, PLAYTIKA HOLDING DL 01 is 3.64 times less risky than Postal Savings. It trades about 0.05 of its potential returns per unit of risk. Postal Savings Bank is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Postal Savings Bank on September 3, 2024 and sell it today you would earn a total of 30.00 from holding Postal Savings Bank or generate 130.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. Postal Savings Bank
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| Postal Savings Bank |
PLAYTIKA HOLDING and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and Postal Savings
The main advantage of trading using opposite PLAYTIKA HOLDING and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.| PLAYTIKA HOLDING vs. HK Electric Investments | PLAYTIKA HOLDING vs. REGAL ASIAN INVESTMENTS | PLAYTIKA HOLDING vs. China Resources Beer | PLAYTIKA HOLDING vs. Japan Asia Investment |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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