Correlation Between PLAYTIKA HOLDING and Graham Holdings
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and Graham Holdings 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 Graham Holdings 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 Graham Holdings Co, you can compare the effects of market volatilities on PLAYTIKA HOLDING and Graham Holdings 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 Graham Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and Graham Holdings.
Diversification Opportunities for PLAYTIKA HOLDING and Graham Holdings
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PLAYTIKA and Graham is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and Graham Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings 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 Graham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and Graham Holdings go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and Graham Holdings
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to generate 1.64 times more return on investment than Graham Holdings. However, PLAYTIKA HOLDING is 1.64 times more volatile than Graham Holdings Co. It trades about 0.12 of its potential returns per unit of risk. Graham Holdings Co is currently generating about 0.14 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 Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. Graham Holdings Co
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| Graham Holdings |
PLAYTIKA HOLDING and Graham Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and Graham Holdings
The main advantage of trading using opposite PLAYTIKA HOLDING and Graham Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, Graham Holdings 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 Graham Holdings will offset losses from the drop in Graham Holdings' 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 |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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