Correlation Between Konami Holdings and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Konami Holdings 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 Konami Holdings and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konami Holdings and Playtika Holding Corp, you can compare the effects of market volatilities on Konami Holdings 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 Konami Holdings with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konami Holdings and Playtika Holding.
Diversification Opportunities for Konami Holdings and Playtika Holding
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Konami and Playtika is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Konami Holdings 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 Konami Holdings 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 Konami Holdings 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 Konami Holdings i.e., Konami Holdings and Playtika Holding go up and down completely randomly.
Pair Corralation between Konami Holdings and Playtika Holding
Assuming the 90 days horizon Konami Holdings is expected to generate 0.89 times more return on investment than Playtika Holding. However, Konami Holdings is 1.12 times less risky than Playtika Holding. It trades about 0.08 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.02 per unit of risk. If you would invest 2,221 in Konami Holdings on August 28, 2024 and sell it today you would earn a total of 2,553 from holding Konami Holdings or generate 114.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konami Holdings vs. Playtika Holding Corp
Performance |
| Timeline |
| Konami Holdings |
| Playtika Holding Corp |
Konami Holdings and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konami Holdings and Playtika Holding
The main advantage of trading using opposite Konami Holdings and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konami Holdings 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.| Konami Holdings vs. GDEV Inc | Konami Holdings vs. Doubledown Interactive Co | Konami Holdings vs. Playstudios | Konami Holdings vs. SohuCom |
| Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |