Correlation Between IX Acquisition and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both IX Acquisition 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 IX Acquisition and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IX Acquisition Corp and Playtika Holding Corp, you can compare the effects of market volatilities on IX Acquisition 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 IX Acquisition with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of IX Acquisition and Playtika Holding.
Diversification Opportunities for IX Acquisition and Playtika Holding
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IXAQU and Playtika is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding IX Acquisition Corp 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 IX Acquisition 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 IX Acquisition Corp 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 IX Acquisition i.e., IX Acquisition and Playtika Holding go up and down completely randomly.
Pair Corralation between IX Acquisition and Playtika Holding
Assuming the 90 days horizon IX Acquisition Corp is expected to generate 0.78 times more return on investment than Playtika Holding. However, IX Acquisition Corp is 1.28 times less risky than Playtika Holding. It trades about 0.1 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about -0.01 per unit of risk. If you would invest 1,004 in IX Acquisition Corp on September 1, 2024 and sell it today you would earn a total of 137.00 from holding IX Acquisition Corp or generate 13.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.98% |
| Values | Daily Returns |
IX Acquisition Corp vs. Playtika Holding Corp
Performance |
| Timeline |
| IX Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Playtika Holding Corp |
IX Acquisition and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IX Acquisition and Playtika Holding
The main advantage of trading using opposite IX Acquisition and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IX Acquisition 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.| IX Acquisition vs. Paysafe | IX Acquisition vs. Cadence Design Systems | IX Acquisition vs. Rumble Inc | IX Acquisition vs. Entegris |
| Playtika Holding vs. Gravity Co | Playtika Holding vs. NetEase | Playtika Holding vs. Snail, Class A | Playtika Holding vs. GameSquare Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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