Correlation Between Apogee Enterprises and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises 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 Apogee Enterprises and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Playtika Holding Corp, you can compare the effects of market volatilities on Apogee Enterprises 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 Apogee Enterprises with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Playtika Holding.
Diversification Opportunities for Apogee Enterprises and Playtika Holding
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apogee and Playtika is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises 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 Apogee Enterprises 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 Apogee Enterprises 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 Apogee Enterprises i.e., Apogee Enterprises and Playtika Holding go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Playtika Holding
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 1.62 times more return on investment than Playtika Holding. However, Apogee Enterprises is 1.62 times more volatile than Playtika Holding Corp. It trades about 0.3 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.3 per unit of risk. If you would invest 7,484 in Apogee Enterprises on September 1, 2024 and sell it today you would earn a total of 937.00 from holding Apogee Enterprises or generate 12.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. Playtika Holding Corp
Performance |
| Timeline |
| Apogee Enterprises |
| Playtika Holding Corp |
Apogee Enterprises and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Playtika Holding
The main advantage of trading using opposite Apogee Enterprises and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises 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.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
| Playtika Holding vs. Gravity Co | Playtika Holding vs. NetEase | Playtika Holding vs. Snail, Class A | Playtika Holding vs. GameSquare 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Positions Ratings 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 | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |