Correlation Between UET United and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both UET United 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 UET United and PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UET United Electronic and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on UET United 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 UET United with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of UET United and PLAYTIKA HOLDING.
Diversification Opportunities for UET United and PLAYTIKA HOLDING
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UET and PLAYTIKA is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding UET United Electronic 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 UET United 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 UET United Electronic 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 UET United i.e., UET United and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between UET United and PLAYTIKA HOLDING
Assuming the 90 days trading horizon UET United Electronic is expected to generate 2.41 times more return on investment than PLAYTIKA HOLDING. However, UET United is 2.41 times more volatile than PLAYTIKA HOLDING DL 01. It trades about 0.25 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about 0.25 per unit of risk. If you would invest 82.00 in UET United Electronic on August 25, 2024 and sell it today you would earn a total of 28.00 from holding UET United Electronic or generate 34.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
UET United Electronic vs. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| UET United Electronic |
| PLAYTIKA HOLDING |
UET United and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UET United and PLAYTIKA HOLDING
The main advantage of trading using opposite UET United and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UET United 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.| UET United vs. Cisco Systems | UET United vs. Telefonaktiebolaget LM Ericsson | UET United vs. Superior Plus Corp | UET United vs. NMI Holdings |
| PLAYTIKA HOLDING vs. Sea Limited | PLAYTIKA HOLDING vs. NEXON Co | PLAYTIKA HOLDING vs. Take Two Interactive Software | PLAYTIKA HOLDING vs. Bilibili |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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