Correlation Between PLAYTIKA HOLDING and THRACE PLASTICS
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and THRACE PLASTICS 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 THRACE PLASTICS 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 THRACE PLASTICS, you can compare the effects of market volatilities on PLAYTIKA HOLDING and THRACE PLASTICS 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 THRACE PLASTICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and THRACE PLASTICS.
Diversification Opportunities for PLAYTIKA HOLDING and THRACE PLASTICS
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PLAYTIKA and THRACE is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and THRACE PLASTICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THRACE PLASTICS 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 THRACE PLASTICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THRACE PLASTICS has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and THRACE PLASTICS go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and THRACE PLASTICS
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to generate 1.22 times more return on investment than THRACE PLASTICS. However, PLAYTIKA HOLDING is 1.22 times more volatile than THRACE PLASTICS. It trades about 0.14 of its potential returns per unit of risk. THRACE PLASTICS is currently generating about 0.12 per unit of risk. If you would invest 670.00 in PLAYTIKA HOLDING DL 01 on November 6, 2024 and sell it today you would earn a total of 35.00 from holding PLAYTIKA HOLDING DL 01 or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. THRACE PLASTICS
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| THRACE PLASTICS |
PLAYTIKA HOLDING and THRACE PLASTICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and THRACE PLASTICS
The main advantage of trading using opposite PLAYTIKA HOLDING and THRACE PLASTICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, THRACE PLASTICS 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 THRACE PLASTICS will offset losses from the drop in THRACE PLASTICS's long position.| PLAYTIKA HOLDING vs. Penta Ocean Construction Co | PLAYTIKA HOLDING vs. Federal Agricultural Mortgage | PLAYTIKA HOLDING vs. Dairy Farm International | PLAYTIKA HOLDING vs. Hanison Construction Holdings |
| THRACE PLASTICS vs. US Physical Therapy | THRACE PLASTICS vs. EPSILON HEALTHCARE LTD | THRACE PLASTICS vs. Tower One Wireless | THRACE PLASTICS vs. Geely Automobile Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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