Correlation Between CapitaLand Investment and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment 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 CapitaLand Investment and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CapitaLand Investment Limited and Playtika Holding Corp, you can compare the effects of market volatilities on CapitaLand Investment 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 CapitaLand Investment with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Playtika Holding.
Diversification Opportunities for CapitaLand Investment and Playtika Holding
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CapitaLand and Playtika is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited 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 CapitaLand Investment 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 CapitaLand Investment Limited 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 CapitaLand Investment i.e., CapitaLand Investment and Playtika Holding go up and down completely randomly.
Pair Corralation between CapitaLand Investment and Playtika Holding
If you would invest 680.00 in Playtika Holding Corp on October 25, 2024 and sell it today you would earn a total of 35.00 from holding Playtika Holding Corp or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. Playtika Holding Corp
Performance |
| Timeline |
| CapitaLand Investment |
| Playtika Holding Corp |
CapitaLand Investment and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and Playtika Holding
The main advantage of trading using opposite CapitaLand Investment and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment 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.| CapitaLand Investment vs. IRSA Inversiones Y | CapitaLand Investment vs. Anywhere Real Estate | CapitaLand Investment vs. Newmark Group | CapitaLand Investment vs. Wharf Real Estate |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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