Correlation Between PLAYTIKA HOLDING and Sun Life
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and Sun Life 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 Sun Life 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 Sun Life Financial, you can compare the effects of market volatilities on PLAYTIKA HOLDING and Sun Life 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 Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and Sun Life.
Diversification Opportunities for PLAYTIKA HOLDING and Sun Life
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PLAYTIKA and Sun is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Financial 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 Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and Sun Life go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and Sun Life
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to generate 2.02 times more return on investment than Sun Life. However, PLAYTIKA HOLDING is 2.02 times more volatile than Sun Life Financial. It trades about 0.03 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.06 per unit of risk. If you would invest 665.00 in PLAYTIKA HOLDING DL 01 on October 20, 2024 and sell it today you would earn a total of 5.00 from holding PLAYTIKA HOLDING DL 01 or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. Sun Life Financial
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| Sun Life Financial |
PLAYTIKA HOLDING and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and Sun Life
The main advantage of trading using opposite PLAYTIKA HOLDING and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, Sun Life 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 Sun Life will offset losses from the drop in Sun Life's long position.| PLAYTIKA HOLDING vs. NAKED WINES PLC | PLAYTIKA HOLDING vs. Infrastrutture Wireless Italiane | PLAYTIKA HOLDING vs. IMAGIN MEDICAL INC | PLAYTIKA HOLDING vs. KENEDIX OFFICE INV |
| Sun Life vs. Information Services International Dentsu | Sun Life vs. DAIDO METAL TD | Sun Life vs. Alliance Data Systems | Sun Life vs. Hyrican Informationssysteme Aktiengesellschaft |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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