Correlation Between PLAYTIKA HOLDING and MYFAIR GOLD
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and MYFAIR GOLD 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 MYFAIR GOLD 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 MYFAIR GOLD P, you can compare the effects of market volatilities on PLAYTIKA HOLDING and MYFAIR GOLD 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 MYFAIR GOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and MYFAIR GOLD.
Diversification Opportunities for PLAYTIKA HOLDING and MYFAIR GOLD
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PLAYTIKA and MYFAIR is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and MYFAIR GOLD P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYFAIR GOLD P 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 MYFAIR GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYFAIR GOLD P has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and MYFAIR GOLD go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and MYFAIR GOLD
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to generate 0.49 times more return on investment than MYFAIR GOLD. However, PLAYTIKA HOLDING DL 01 is 2.05 times less risky than MYFAIR GOLD. It trades about 0.18 of its potential returns per unit of risk. MYFAIR GOLD P is currently generating about -0.05 per unit of risk. If you would invest 715.00 in PLAYTIKA HOLDING DL 01 on September 3, 2024 and sell it today you would earn a total of 65.00 from holding PLAYTIKA HOLDING DL 01 or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. MYFAIR GOLD P
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| MYFAIR GOLD P |
PLAYTIKA HOLDING and MYFAIR GOLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and MYFAIR GOLD
The main advantage of trading using opposite PLAYTIKA HOLDING and MYFAIR GOLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, MYFAIR GOLD 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 MYFAIR GOLD will offset losses from the drop in MYFAIR GOLD's 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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