Correlation Between PLAYTIKA HOLDING and AXA SA
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and AXA SA 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 AXA SA 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 AXA SA, you can compare the effects of market volatilities on PLAYTIKA HOLDING and AXA SA 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 AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and AXA SA.
Diversification Opportunities for PLAYTIKA HOLDING and AXA SA
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PLAYTIKA and AXA is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA 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 AXA SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA SA has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and AXA SA go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and AXA SA
Assuming the 90 days horizon PLAYTIKA HOLDING is expected to generate 1.7 times less return on investment than AXA SA. In addition to that, PLAYTIKA HOLDING is 2.14 times more volatile than AXA SA. It trades about 0.02 of its total potential returns per unit of risk. AXA SA is currently generating about 0.06 per unit of volatility. If you would invest 2,370 in AXA SA on September 12, 2024 and sell it today you would earn a total of 1,002 from holding AXA SA or generate 42.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. AXA SA
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| AXA SA |
PLAYTIKA HOLDING and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and AXA SA
The main advantage of trading using opposite PLAYTIKA HOLDING and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, AXA SA 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 AXA SA will offset losses from the drop in AXA SA's long position.| PLAYTIKA HOLDING vs. NEXON Co | PLAYTIKA HOLDING vs. Take Two Interactive Software | PLAYTIKA HOLDING vs. Superior Plus Corp | PLAYTIKA HOLDING vs. SIVERS SEMICONDUCTORS AB |
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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 Valuation module to check real value of public entities based on technical and fundamental data.
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