Correlation Between Playtika Holding and Affiliated Resources
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Affiliated Resources 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 Affiliated Resources 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 Affiliated Resources Corp, you can compare the effects of market volatilities on Playtika Holding and Affiliated Resources 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 Affiliated Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Affiliated Resources.
Diversification Opportunities for Playtika Holding and Affiliated Resources
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Playtika and Affiliated is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Affiliated Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affiliated Resources Corp 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 Affiliated Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affiliated Resources Corp has no effect on the direction of Playtika Holding i.e., Playtika Holding and Affiliated Resources go up and down completely randomly.
Pair Corralation between Playtika Holding and Affiliated Resources
Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Affiliated Resources. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 20.14 times less risky than Affiliated Resources. The stock trades about 0.0 of its potential returns per unit of risk. The Affiliated Resources Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.06 in Affiliated Resources Corp on August 31, 2024 and sell it today you would earn a total of 8.14 from holding Affiliated Resources Corp or generate 13566.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Affiliated Resources Corp
Performance |
| Timeline |
| Playtika Holding Corp |
| Affiliated Resources Corp |
Playtika Holding and Affiliated Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Affiliated Resources
The main advantage of trading using opposite Playtika Holding and Affiliated Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Affiliated Resources 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 Affiliated Resources will offset losses from the drop in Affiliated Resources' long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| Affiliated Resources vs. BRP Inc | Affiliated Resources vs. Arrow Electronics | Affiliated Resources vs. Playtika Holding Corp | Affiliated Resources vs. Playa Hotels Resorts |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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