Correlation Between PLAYTIKA HOLDING and CHINA SOUTHN
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and CHINA SOUTHN 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 CHINA SOUTHN 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 CHINA SOUTHN AIR H , you can compare the effects of market volatilities on PLAYTIKA HOLDING and CHINA SOUTHN 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 CHINA SOUTHN. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and CHINA SOUTHN.
Diversification Opportunities for PLAYTIKA HOLDING and CHINA SOUTHN
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PLAYTIKA and CHINA is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and CHINA SOUTHN AIR H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA SOUTHN AIR 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 CHINA SOUTHN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA SOUTHN AIR has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and CHINA SOUTHN go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and CHINA SOUTHN
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the CHINA SOUTHN. But the stock apears to be less risky and, when comparing its historical volatility, PLAYTIKA HOLDING DL 01 is 1.2 times less risky than CHINA SOUTHN. The stock trades about -0.01 of its potential returns per unit of risk. The CHINA SOUTHN AIR H is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 65.00 in CHINA SOUTHN AIR H on October 14, 2024 and sell it today you would lose (19.00) from holding CHINA SOUTHN AIR H or give up 29.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. CHINA SOUTHN AIR H
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| CHINA SOUTHN AIR |
PLAYTIKA HOLDING and CHINA SOUTHN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and CHINA SOUTHN
The main advantage of trading using opposite PLAYTIKA HOLDING and CHINA SOUTHN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, CHINA SOUTHN 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 CHINA SOUTHN will offset losses from the drop in CHINA SOUTHN's long position.| PLAYTIKA HOLDING vs. CVW CLEANTECH INC | PLAYTIKA HOLDING vs. NetSol Technologies | PLAYTIKA HOLDING vs. Kingdee International Software | PLAYTIKA HOLDING vs. Cleanaway Waste Management |
| CHINA SOUTHN vs. PLAYSTUDIOS A DL 0001 | CHINA SOUTHN vs. Playtech plc | CHINA SOUTHN vs. PLAYTIKA HOLDING DL 01 | CHINA SOUTHN vs. Playmates Toys Limited |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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