Correlation Between Sunnova Energy and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Sunnova Energy 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 Sunnova Energy and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunnova Energy International and Playtika Holding Corp, you can compare the effects of market volatilities on Sunnova Energy 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 Sunnova Energy with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunnova Energy and Playtika Holding.
Diversification Opportunities for Sunnova Energy and Playtika Holding
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunnova and Playtika is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sunnova Energy International 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 Sunnova Energy 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 Sunnova Energy International 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 Sunnova Energy i.e., Sunnova Energy and Playtika Holding go up and down completely randomly.
Pair Corralation between Sunnova Energy and Playtika Holding
Given the investment horizon of 90 days Sunnova Energy International is expected to generate 14.79 times more return on investment than Playtika Holding. However, Sunnova Energy is 14.79 times more volatile than Playtika Holding Corp. It trades about 0.09 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.4 per unit of risk. If you would invest 535.00 in Sunnova Energy International on August 28, 2024 and sell it today you would lose (1.00) from holding Sunnova Energy International or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunnova Energy International vs. Playtika Holding Corp
Performance |
| Timeline |
| Sunnova Energy Inter |
| Playtika Holding Corp |
Sunnova Energy and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunnova Energy and Playtika Holding
The main advantage of trading using opposite Sunnova Energy and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunnova Energy 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.| Sunnova Energy vs. Enphase Energy | Sunnova Energy vs. First Solar | Sunnova Energy vs. SolarEdge Technologies | Sunnova Energy vs. JinkoSolar Holding |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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