Correlation Between Lendlease and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both Lendlease 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 Lendlease and PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on Lendlease 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 Lendlease with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and PLAYTIKA HOLDING.
Diversification Opportunities for Lendlease and PLAYTIKA HOLDING
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lendlease and PLAYTIKA is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING and Lendlease 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 Lendlease Group 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 has no effect on the direction of Lendlease i.e., Lendlease and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between Lendlease and PLAYTIKA HOLDING
Assuming the 90 days trading horizon Lendlease Group is expected to under-perform the PLAYTIKA HOLDING. But the stock apears to be less risky and, when comparing its historical volatility, Lendlease Group is 1.37 times less risky than PLAYTIKA HOLDING. The stock trades about -0.03 of its potential returns per unit of risk. The PLAYTIKA HOLDING DL 01 is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 646.00 in PLAYTIKA HOLDING DL 01 on September 12, 2024 and sell it today you would earn a total of 149.00 from holding PLAYTIKA HOLDING DL 01 or generate 23.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Group vs. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| Lendlease Group |
| PLAYTIKA HOLDING |
Lendlease and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and PLAYTIKA HOLDING
The main advantage of trading using opposite Lendlease and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease 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.The idea behind Lendlease Group and PLAYTIKA HOLDING DL 01 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| PLAYTIKA HOLDING vs. NEXON Co | PLAYTIKA HOLDING vs. Take Two Interactive Software | PLAYTIKA HOLDING vs. Superior Plus Corp | PLAYTIKA HOLDING vs. SIVERS SEMICONDUCTORS AB |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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