Correlation Between PLAYTIKA HOLDING and USWE SPORTS

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Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and USWE SPORTS 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 USWE SPORTS 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 USWE SPORTS AB, you can compare the effects of market volatilities on PLAYTIKA HOLDING and USWE SPORTS 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 USWE SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and USWE SPORTS.

Diversification Opportunities for PLAYTIKA HOLDING and USWE SPORTS

PLAYTIKAUSWEDiversified AwayPLAYTIKAUSWEDiversified Away100%
-0.29
  Correlation Coefficient

Very good diversification

The 3 months correlation between PLAYTIKA and USWE is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and USWE SPORTS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USWE SPORTS AB 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 USWE SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USWE SPORTS AB has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and USWE SPORTS go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and USWE SPORTS

Assuming the 90 days horizon PLAYTIKA HOLDING is expected to generate 2.3 times less return on investment than USWE SPORTS. But when comparing it to its historical volatility, PLAYTIKA HOLDING DL 01 is 1.48 times less risky than USWE SPORTS. It trades about 0.07 of its potential returns per unit of risk. USWE SPORTS AB is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  73.00  in USWE SPORTS AB on November 23, 2024 and sell it today you would earn a total of  8.00  from holding USWE SPORTS AB or generate 10.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

PLAYTIKA HOLDING DL 01  vs.  USWE SPORTS AB

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-5051015
JavaScript chart by amCharts 3.21.158II 9GY
       Timeline  
PLAYTIKA HOLDING 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days PLAYTIKA HOLDING DL 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb6.46.66.877.27.47.67.88
USWE SPORTS AB 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in USWE SPORTS AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, USWE SPORTS may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.70.750.80.85

PLAYTIKA HOLDING and USWE SPORTS Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.47-2.62-1.77-0.91-0.05790.721.482.253.023.78 0.050.060.070.080.09
JavaScript chart by amCharts 3.21.158II 9GY
       Returns  

Pair Trading with PLAYTIKA HOLDING and USWE SPORTS

The main advantage of trading using opposite PLAYTIKA HOLDING and USWE SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, USWE SPORTS 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 USWE SPORTS will offset losses from the drop in USWE SPORTS's long position.
The idea behind PLAYTIKA HOLDING DL 01 and USWE SPORTS AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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