Correlation Between Greencore Group and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Greencore Group 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 Greencore Group and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greencore Group PLC and Playtika Holding Corp, you can compare the effects of market volatilities on Greencore Group 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 Greencore Group with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greencore Group and Playtika Holding.
Diversification Opportunities for Greencore Group and Playtika Holding
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Greencore and Playtika is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Greencore Group PLC 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 Greencore Group 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 Greencore Group PLC 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 Greencore Group i.e., Greencore Group and Playtika Holding go up and down completely randomly.
Pair Corralation between Greencore Group and Playtika Holding
Assuming the 90 days horizon Greencore Group PLC is expected to generate 2.04 times more return on investment than Playtika Holding. However, Greencore Group is 2.04 times more volatile than Playtika Holding Corp. It trades about 0.16 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about -0.11 per unit of risk. If you would invest 1,031 in Greencore Group PLC on September 14, 2024 and sell it today you would earn a total of 89.00 from holding Greencore Group PLC or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greencore Group PLC vs. Playtika Holding Corp
Performance |
| Timeline |
| Greencore Group PLC |
| Playtika Holding Corp |
Greencore Group and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greencore Group and Playtika Holding
The main advantage of trading using opposite Greencore Group and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greencore Group 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.| Greencore Group vs. Tower One Wireless | Greencore Group vs. Skechers USA | Greencore Group vs. Montauk Renewables | Greencore Group vs. Sphere Entertainment Co |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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