Correlation Between PLAYTIKA HOLDING and Safety Insurance
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and Safety Insurance 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 Safety Insurance 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 Safety Insurance Group, you can compare the effects of market volatilities on PLAYTIKA HOLDING and Safety Insurance 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 Safety Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and Safety Insurance.
Diversification Opportunities for PLAYTIKA HOLDING and Safety Insurance
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PLAYTIKA and Safety is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and Safety Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safety Insurance 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 Safety Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safety Insurance has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and Safety Insurance go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and Safety Insurance
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the Safety Insurance. In addition to that, PLAYTIKA HOLDING is 1.35 times more volatile than Safety Insurance Group. It trades about 0.0 of its total potential returns per unit of risk. Safety Insurance Group is currently generating about 0.08 per unit of volatility. If you would invest 7,168 in Safety Insurance Group on October 14, 2024 and sell it today you would earn a total of 582.00 from holding Safety Insurance Group or generate 8.12% 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. Safety Insurance Group
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| Safety Insurance |
PLAYTIKA HOLDING and Safety Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and Safety Insurance
The main advantage of trading using opposite PLAYTIKA HOLDING and Safety Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, Safety Insurance 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 Safety Insurance will offset losses from the drop in Safety Insurance's long position.| PLAYTIKA HOLDING vs. Sumitomo Rubber Industries | PLAYTIKA HOLDING vs. The Yokohama Rubber | PLAYTIKA HOLDING vs. Summit Materials | PLAYTIKA HOLDING vs. China Eastern Airlines |
| Safety Insurance vs. MOVIE GAMES SA | Safety Insurance vs. Boyd Gaming | Safety Insurance vs. CONTAGIOUS GAMING INC | Safety Insurance vs. Media and Games |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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