Correlation Between United Breweries and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both United Breweries 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 United Breweries and PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Breweries Co and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on United Breweries 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 United Breweries with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Breweries and PLAYTIKA HOLDING.
Diversification Opportunities for United Breweries and PLAYTIKA HOLDING
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and PLAYTIKA is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding United Breweries Co 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 United Breweries 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 United Breweries Co 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 United Breweries i.e., United Breweries and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between United Breweries and PLAYTIKA HOLDING
Assuming the 90 days trading horizon United Breweries Co is expected to generate 0.85 times more return on investment than PLAYTIKA HOLDING. However, United Breweries Co is 1.18 times less risky than PLAYTIKA HOLDING. It trades about 0.2 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about 0.09 per unit of risk. If you would invest 1,060 in United Breweries Co on November 1, 2024 and sell it today you would earn a total of 70.00 from holding United Breweries Co or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
United Breweries Co vs. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| United Breweries |
| PLAYTIKA HOLDING |
United Breweries and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Breweries and PLAYTIKA HOLDING
The main advantage of trading using opposite United Breweries and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Breweries 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.| United Breweries vs. SOGECLAIR SA INH | United Breweries vs. Corsair Gaming | United Breweries vs. Games Workshop Group | United Breweries vs. FORWARD AIR P |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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