Correlation Between CHINA EDUCATION and PLAYTIKA HOLDING

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both CHINA EDUCATION 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 CHINA EDUCATION and PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA EDUCATION GROUP and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on CHINA EDUCATION 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 CHINA EDUCATION with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA EDUCATION and PLAYTIKA HOLDING.

Diversification Opportunities for CHINA EDUCATION and PLAYTIKA HOLDING

CHINAPLAYTIKADiversified AwayCHINAPLAYTIKADiversified Away100%
-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between CHINA and PLAYTIKA is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding CHINA EDUCATION GROUP and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING and CHINA EDUCATION 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 CHINA EDUCATION 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 has no effect on the direction of CHINA EDUCATION i.e., CHINA EDUCATION and PLAYTIKA HOLDING go up and down completely randomly.

Pair Corralation between CHINA EDUCATION and PLAYTIKA HOLDING

Assuming the 90 days horizon CHINA EDUCATION GROUP is expected to under-perform the PLAYTIKA HOLDING. In addition to that, CHINA EDUCATION is 1.29 times more volatile than PLAYTIKA HOLDING DL 01. It trades about -0.05 of its total potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about 0.0 per unit of volatility. If you would invest  802.00  in PLAYTIKA HOLDING DL 01 on November 30, 2024 and sell it today you would lose (157.00) from holding PLAYTIKA HOLDING DL 01 or give up 19.58% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

CHINA EDUCATION GROUP  vs.  PLAYTIKA HOLDING DL 01

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10010203040
JavaScript chart by amCharts 3.21.15C3W 8II
       Timeline  
CHINA EDUCATION GROUP 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days CHINA EDUCATION GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.280.30.320.340.360.380.40.42
PLAYTIKA HOLDING 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days PLAYTIKA HOLDING DL 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb6.46.66.877.27.47.67.88

CHINA EDUCATION and PLAYTIKA HOLDING Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.5-4.86-3.23-1.60.01.472.934.45.87 0.020.040.060.08
JavaScript chart by amCharts 3.21.15C3W 8II
       Returns  

Pair Trading with CHINA EDUCATION and PLAYTIKA HOLDING

The main advantage of trading using opposite CHINA EDUCATION and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA EDUCATION 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.
The idea behind CHINA EDUCATION GROUP and PLAYTIKA HOLDING DL 01 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Share Portfolio
Track or share privately all of your investments from the convenience of any device
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Equity Valuation
Check real value of public entities based on technical and fundamental data
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules