Correlation Between PLAYTIKA HOLDING and Lendlease
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and Lendlease 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 Lendlease 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 Lendlease Group, you can compare the effects of market volatilities on PLAYTIKA HOLDING and Lendlease 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 Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and Lendlease.
Diversification Opportunities for PLAYTIKA HOLDING and Lendlease
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between PLAYTIKA and Lendlease is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and Lendlease go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and Lendlease
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to generate 1.29 times more return on investment than Lendlease. However, PLAYTIKA HOLDING is 1.29 times more volatile than Lendlease Group. It trades about 0.01 of its potential returns per unit of risk. Lendlease Group is currently generating about 0.01 per unit of risk. If you would invest 781.00 in PLAYTIKA HOLDING DL 01 on September 4, 2024 and sell it today you would lose (1.00) from holding PLAYTIKA HOLDING DL 01 or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. Lendlease Group
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| Lendlease Group |
PLAYTIKA HOLDING and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and Lendlease
The main advantage of trading using opposite PLAYTIKA HOLDING and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| PLAYTIKA HOLDING vs. Nintendo Co | PLAYTIKA HOLDING vs. Nintendo Co | PLAYTIKA HOLDING vs. Sea Limited | PLAYTIKA HOLDING vs. Take Two Interactive Software |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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