Correlation Between Playtika Holding and Academy Sports
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Academy Sports 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 Academy Sports 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 Academy Sports Outdoors, you can compare the effects of market volatilities on Playtika Holding and Academy Sports 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 Academy Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Academy Sports.
Diversification Opportunities for Playtika Holding and Academy Sports
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playtika and Academy is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Academy Sports Outdoors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Academy Sports Outdoors 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 Academy Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Academy Sports Outdoors has no effect on the direction of Playtika Holding i.e., Playtika Holding and Academy Sports go up and down completely randomly.
Pair Corralation between Playtika Holding and Academy Sports
Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Academy Sports. In addition to that, Playtika Holding is 1.03 times more volatile than Academy Sports Outdoors. It trades about -0.01 of its total potential returns per unit of risk. Academy Sports Outdoors is currently generating about 0.01 per unit of volatility. If you would invest 5,026 in Academy Sports Outdoors on August 31, 2024 and sell it today you would lose (101.00) from holding Academy Sports Outdoors or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Academy Sports Outdoors
Performance |
| Timeline |
| Playtika Holding Corp |
| Academy Sports Outdoors |
Playtika Holding and Academy Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Academy Sports
The main advantage of trading using opposite Playtika Holding and Academy Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Academy Sports 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 Academy Sports will offset losses from the drop in Academy Sports' long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| Academy Sports vs. Williams Sonoma | Academy Sports vs. AutoZone | Academy Sports vs. Ulta Beauty | Academy Sports vs. Best Buy Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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