Correlation Between PLAYTIKA HOLDING and CEWE Stiftung
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and CEWE Stiftung 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 CEWE Stiftung 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 CEWE Stiftung Co, you can compare the effects of market volatilities on PLAYTIKA HOLDING and CEWE Stiftung 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 CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and CEWE Stiftung.
Diversification Opportunities for PLAYTIKA HOLDING and CEWE Stiftung
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PLAYTIKA and CEWE is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung 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 CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and CEWE Stiftung go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and CEWE Stiftung
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to generate 1.06 times more return on investment than CEWE Stiftung. However, PLAYTIKA HOLDING is 1.06 times more volatile than CEWE Stiftung Co. It trades about 0.16 of its potential returns per unit of risk. CEWE Stiftung Co is currently generating about -0.03 per unit of risk. If you would invest 765.00 in PLAYTIKA HOLDING DL 01 on September 12, 2024 and sell it today you would earn a total of 40.00 from holding PLAYTIKA HOLDING DL 01 or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. CEWE Stiftung Co
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| CEWE Stiftung |
PLAYTIKA HOLDING and CEWE Stiftung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and CEWE Stiftung
The main advantage of trading using opposite PLAYTIKA HOLDING and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung'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 |
| CEWE Stiftung vs. MTI WIRELESS EDGE | CEWE Stiftung vs. Darden Restaurants | CEWE Stiftung vs. INTERSHOP Communications Aktiengesellschaft | CEWE Stiftung vs. BJs Restaurants |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |