Correlation Between Eastern and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Eastern 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 Eastern and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastern Co and Playtika Holding Corp, you can compare the effects of market volatilities on Eastern 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 Eastern with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern and Playtika Holding.
Diversification Opportunities for Eastern and Playtika Holding
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eastern and Playtika is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Co 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 Eastern 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 Eastern 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 Corp has no effect on the direction of Eastern i.e., Eastern and Playtika Holding go up and down completely randomly.
Pair Corralation between Eastern and Playtika Holding
Considering the 90-day investment horizon Eastern Co is expected to under-perform the Playtika Holding. In addition to that, Eastern is 2.39 times more volatile than Playtika Holding Corp. It trades about -0.02 of its total potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.28 per unit of volatility. If you would invest 790.00 in Playtika Holding Corp on September 4, 2024 and sell it today you would earn a total of 56.00 from holding Playtika Holding Corp or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Co vs. Playtika Holding Corp
Performance |
| Timeline |
| Eastern |
| Playtika Holding Corp |
Eastern and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern and Playtika Holding
The main advantage of trading using opposite Eastern and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern 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.| Eastern vs. AB SKF | Eastern vs. Aquagold International | Eastern vs. Thrivent High Yield | Eastern vs. Morningstar Unconstrained Allocation |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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