Correlation Between PLAYTIKA HOLDING and Canon
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and Canon 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 Canon 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 Canon Inc, you can compare the effects of market volatilities on PLAYTIKA HOLDING and Canon 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 Canon. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and Canon.
Diversification Opportunities for PLAYTIKA HOLDING and Canon
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PLAYTIKA and Canon is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and Canon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Inc 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 Canon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canon Inc has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and Canon go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and Canon
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to generate 1.56 times more return on investment than Canon. However, PLAYTIKA HOLDING is 1.56 times more volatile than Canon Inc. It trades about 0.25 of its potential returns per unit of risk. Canon Inc is currently generating about 0.07 per unit of risk. If you would invest 695.00 in PLAYTIKA HOLDING DL 01 on August 25, 2024 and sell it today you would earn a total of 95.00 from holding PLAYTIKA HOLDING DL 01 or generate 13.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. Canon Inc
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| Canon Inc |
PLAYTIKA HOLDING and Canon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and Canon
The main advantage of trading using opposite PLAYTIKA HOLDING and Canon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, Canon 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 Canon will offset losses from the drop in Canon's long position.| PLAYTIKA HOLDING vs. Sea Limited | PLAYTIKA HOLDING vs. NEXON Co | PLAYTIKA HOLDING vs. Take Two Interactive Software | PLAYTIKA HOLDING vs. Bilibili |
| Canon vs. Sumitomo Mitsui Construction | Canon vs. Columbia Sportswear | Canon vs. ARISTOCRAT LEISURE | Canon vs. PLAYTIKA HOLDING DL 01 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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