Correlation Between Playtika Holding and AMREP
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and AMREP 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 AMREP 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 AMREP, you can compare the effects of market volatilities on Playtika Holding and AMREP 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 AMREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and AMREP.
Diversification Opportunities for Playtika Holding and AMREP
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Playtika and AMREP is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP 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 AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of Playtika Holding i.e., Playtika Holding and AMREP go up and down completely randomly.
Pair Corralation between Playtika Holding and AMREP
Given the investment horizon of 90 days Playtika Holding is expected to generate 2.52 times less return on investment than AMREP. But when comparing it to its historical volatility, Playtika Holding Corp is 3.73 times less risky than AMREP. It trades about 0.43 of its potential returns per unit of risk. AMREP is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,830 in AMREP on August 25, 2024 and sell it today you would earn a total of 890.00 from holding AMREP or generate 31.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. AMREP
Performance |
| Timeline |
| Playtika Holding Corp |
| AMREP |
Playtika Holding and AMREP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and AMREP
The main advantage of trading using opposite Playtika Holding and AMREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, AMREP 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 AMREP will offset losses from the drop in AMREP's long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| AMREP vs. Landsea Homes Corp | AMREP vs. Forestar Group | AMREP vs. Five Point Holdings | AMREP vs. American Realty Investors |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |