Correlation Between PLAYTIKA HOLDING and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and MCEWEN MINING 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 MCEWEN MINING 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 MCEWEN MINING INC, you can compare the effects of market volatilities on PLAYTIKA HOLDING and MCEWEN MINING 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 MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and MCEWEN MINING.
Diversification Opportunities for PLAYTIKA HOLDING and MCEWEN MINING
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PLAYTIKA and MCEWEN is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC 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 MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and MCEWEN MINING go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and MCEWEN MINING
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the MCEWEN MINING. But the stock apears to be less risky and, when comparing its historical volatility, PLAYTIKA HOLDING DL 01 is 1.08 times less risky than MCEWEN MINING. The stock trades about -0.27 of its potential returns per unit of risk. The MCEWEN MINING INC is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 855.00 in MCEWEN MINING INC on October 12, 2024 and sell it today you would lose (50.00) from holding MCEWEN MINING INC or give up 5.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. MCEWEN MINING INC
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| MCEWEN MINING INC |
PLAYTIKA HOLDING and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and MCEWEN MINING
The main advantage of trading using opposite PLAYTIKA HOLDING and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, MCEWEN MINING 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING's long position.| PLAYTIKA HOLDING vs. Keck Seng Investments | PLAYTIKA HOLDING vs. VARIOUS EATERIES LS | PLAYTIKA HOLDING vs. Tencent Music Entertainment | PLAYTIKA HOLDING vs. SEI INVESTMENTS |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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