Correlation Between Abits and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Abits and Playtika Holding 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 Abits and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abits Group and Playtika Holding Corp, you can compare the effects of market volatilities on Abits and Playtika Holding 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 Abits with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abits and Playtika Holding.
Diversification Opportunities for Abits and Playtika Holding
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Abits and Playtika is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Abits Group and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp and Abits 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 Abits Group are associated (or correlated) with Playtika Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtika Holding Corp has no effect on the direction of Abits i.e., Abits and Playtika Holding go up and down completely randomly.
Pair Corralation between Abits and Playtika Holding
Given the investment horizon of 90 days Abits Group is expected to generate 6.2 times more return on investment than Playtika Holding. However, Abits is 6.2 times more volatile than Playtika Holding Corp. It trades about 0.08 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.19 per unit of risk. If you would invest 58.00 in Abits Group on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Abits Group or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Abits Group vs. Playtika Holding Corp
Performance |
| Timeline |
| Abits Group |
| Playtika Holding Corp |
Abits and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abits and Playtika Holding
The main advantage of trading using opposite Abits and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abits position performs unexpectedly, Playtika Holding 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 Playtika Holding will offset losses from the drop in Playtika Holding's long position.| Abits vs. Playtika Holding Corp | Abits vs. EvoAir Holdings | Abits vs. Alaska Air Group | Abits vs. HF Sinclair Corp |
| Playtika Holding vs. SohuCom | Playtika Holding vs. Snail, Class A | Playtika Holding vs. i3 Interactive | Playtika Holding vs. Bragg Gaming Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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