Correlation Between PLAYTIKA HOLDING and PLAYMATES TOYS
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and PLAYMATES TOYS 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 PLAYMATES TOYS 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 PLAYMATES TOYS, you can compare the effects of market volatilities on PLAYTIKA HOLDING and PLAYMATES TOYS 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 PLAYMATES TOYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and PLAYMATES TOYS.
Diversification Opportunities for PLAYTIKA HOLDING and PLAYMATES TOYS
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PLAYTIKA and PLAYMATES is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and PLAYMATES TOYS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYMATES TOYS 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 PLAYMATES TOYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYMATES TOYS has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and PLAYMATES TOYS go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and PLAYMATES TOYS
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to generate 0.73 times more return on investment than PLAYMATES TOYS. However, PLAYTIKA HOLDING DL 01 is 1.38 times less risky than PLAYMATES TOYS. It trades about -0.04 of its potential returns per unit of risk. PLAYMATES TOYS is currently generating about -0.05 per unit of risk. If you would invest 685.00 in PLAYTIKA HOLDING DL 01 on September 24, 2024 and sell it today you would lose (40.00) from holding PLAYTIKA HOLDING DL 01 or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. PLAYMATES TOYS
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| PLAYMATES TOYS |
PLAYTIKA HOLDING and PLAYMATES TOYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and PLAYMATES TOYS
The main advantage of trading using opposite PLAYTIKA HOLDING and PLAYMATES TOYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, PLAYMATES TOYS 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 PLAYMATES TOYS will offset losses from the drop in PLAYMATES TOYS's long position.| PLAYTIKA HOLDING vs. Nintendo Co | PLAYTIKA HOLDING vs. Nintendo Co | PLAYTIKA HOLDING vs. Sea Limited | PLAYTIKA HOLDING vs. Electronic Arts |
| PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Microsoft |
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 CEOs Directory module to screen CEOs from public companies around the world.
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