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
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Konami and Playtika is -0.06. 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 under-perform the Playtika Holding. But the pink sheet apears to be less risky and, when comparing its historical volatility, Konami Holdings is 1.56 times less risky than Playtika Holding. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Playtika Holding Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 676.00 in Playtika Holding Corp on October 22, 2024 and sell it today you would earn a total of 24.00 from holding Playtika Holding Corp or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| 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. NEXON Co | Konami Holdings vs. Sega Sammy Holdings | Konami Holdings vs. Capcom Co Ltd | Konami Holdings vs. CD Projekt SA |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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