Correlation Between Consol Energy and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Consol Energy 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 Consol Energy and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consol Energy and Playtika Holding Corp, you can compare the effects of market volatilities on Consol Energy 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 Consol Energy with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and Playtika Holding.
Diversification Opportunities for Consol Energy and Playtika Holding
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Consol and Playtika is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy 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 Consol Energy 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 Consol Energy 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 Consol Energy i.e., Consol Energy and Playtika Holding go up and down completely randomly.
Pair Corralation between Consol Energy and Playtika Holding
Given the investment horizon of 90 days Consol Energy is expected to generate 1.1 times more return on investment than Playtika Holding. However, Consol Energy is 1.1 times more volatile than Playtika Holding Corp. It trades about 0.05 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about -0.02 per unit of risk. If you would invest 5,922 in Consol Energy on October 12, 2024 and sell it today you would earn a total of 4,137 from holding Consol Energy or generate 69.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consol Energy vs. Playtika Holding Corp
Performance |
| Timeline |
| Consol Energy |
| Playtika Holding Corp |
Consol Energy and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and Playtika Holding
The main advantage of trading using opposite Consol Energy and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy 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.| Consol Energy vs. Alliance Resource Partners | Consol Energy vs. Natural Resource Partners | Consol Energy vs. Hallador Energy | Consol Energy vs. NACCO Industries |
| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |