Correlation Between AEye and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both AEye 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 AEye and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEye Inc and Playtika Holding Corp, you can compare the effects of market volatilities on AEye 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 AEye with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEye and Playtika Holding.
Diversification Opportunities for AEye and Playtika Holding
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AEye and Playtika is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding AEye Inc 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 AEye 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 AEye Inc 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 AEye i.e., AEye and Playtika Holding go up and down completely randomly.
Pair Corralation between AEye and Playtika Holding
Assuming the 90 days horizon AEye Inc is expected to generate 18.24 times more return on investment than Playtika Holding. However, AEye is 18.24 times more volatile than Playtika Holding Corp. It trades about 0.12 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.19 per unit of risk. If you would invest 1.00 in AEye Inc on August 30, 2024 and sell it today you would earn a total of 0.12 from holding AEye Inc or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AEye Inc vs. Playtika Holding Corp
Performance |
| Timeline |
| AEye Inc |
| Playtika Holding Corp |
AEye and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEye and Playtika Holding
The main advantage of trading using opposite AEye and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEye 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.| AEye vs. Faraday Future Intelligent | AEye vs. Innoviz Technologies | AEye vs. Aeye Inc | AEye vs. Xos Equity Warrants |
| Playtika Holding vs. SohuCom | Playtika Holding vs. Snail, Class A | Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. i3 Interactive |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance |