Correlation Between Playtika Holding and Acco Brands
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Acco Brands 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 Playtika Holding and Acco Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtika Holding Corp and Acco Brands, you can compare the effects of market volatilities on Playtika Holding and Acco Brands 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 Playtika Holding with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Acco Brands.
Diversification Opportunities for Playtika Holding and Acco Brands
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Playtika and Acco is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and Playtika Holding 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 Playtika Holding Corp are associated (or correlated) with Acco Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acco Brands has no effect on the direction of Playtika Holding i.e., Playtika Holding and Acco Brands go up and down completely randomly.
Pair Corralation between Playtika Holding and Acco Brands
Given the investment horizon of 90 days Playtika Holding is expected to generate 1.72 times less return on investment than Acco Brands. In addition to that, Playtika Holding is 1.05 times more volatile than Acco Brands. It trades about 0.02 of its total potential returns per unit of risk. Acco Brands is currently generating about 0.03 per unit of volatility. If you would invest 516.00 in Acco Brands on September 2, 2024 and sell it today you would earn a total of 66.00 from holding Acco Brands or generate 12.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Acco Brands
Performance |
| Timeline |
| Playtika Holding Corp |
| Acco Brands |
Playtika Holding and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Acco Brands
The main advantage of trading using opposite Playtika Holding and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Acco Brands 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 Acco Brands will offset losses from the drop in Acco Brands' long position.| Playtika Holding vs. Gravity Co | Playtika Holding vs. NetEase | Playtika Holding vs. Snail, Class A | Playtika Holding vs. GameSquare Holdings |
| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |