Correlation Between PLAYTIKA HOLDING and Air Lease
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and Air Lease 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 Air Lease 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 Air Lease, you can compare the effects of market volatilities on PLAYTIKA HOLDING and Air Lease 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 Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and Air Lease.
Diversification Opportunities for PLAYTIKA HOLDING and Air Lease
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PLAYTIKA and Air is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease 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 Air Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and Air Lease go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and Air Lease
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the Air Lease. In addition to that, PLAYTIKA HOLDING is 1.28 times more volatile than Air Lease. It trades about -0.12 of its total potential returns per unit of risk. Air Lease is currently generating about -0.03 per unit of volatility. If you would invest 4,718 in Air Lease on November 27, 2024 and sell it today you would lose (178.00) from holding Air Lease or give up 3.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. Air Lease
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| Air Lease |
PLAYTIKA HOLDING and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and Air Lease
The main advantage of trading using opposite PLAYTIKA HOLDING and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, Air Lease 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 Air Lease will offset losses from the drop in Air Lease's long position.| PLAYTIKA HOLDING vs. Nintendo Co | PLAYTIKA HOLDING vs. Nintendo Co | PLAYTIKA HOLDING vs. Sea Limited | PLAYTIKA HOLDING vs. Electronic Arts |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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