Correlation Between Entegris and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Entegris 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 Entegris and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and Playtika Holding Corp, you can compare the effects of market volatilities on Entegris 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 Entegris with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Playtika Holding.
Diversification Opportunities for Entegris and Playtika Holding
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Entegris and Playtika is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Entegris 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 Entegris 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 Entegris 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 Entegris i.e., Entegris and Playtika Holding go up and down completely randomly.
Pair Corralation between Entegris and Playtika Holding
Given the investment horizon of 90 days Entegris is expected to generate 1.26 times less return on investment than Playtika Holding. In addition to that, Entegris is 1.12 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 0.02 per unit of volatility. If you would invest 793.00 in Playtika Holding Corp on September 3, 2024 and sell it today you would earn a total of 53.00 from holding Playtika Holding Corp or generate 6.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entegris vs. Playtika Holding Corp
Performance |
| Timeline |
| Entegris |
| Playtika Holding Corp |
Entegris and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and Playtika Holding
The main advantage of trading using opposite Entegris and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris 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.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |