Correlation Between Playtika Holding and Bridger Aerospace
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Bridger Aerospace 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 Bridger Aerospace 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 Bridger Aerospace Group, you can compare the effects of market volatilities on Playtika Holding and Bridger Aerospace 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 Bridger Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Bridger Aerospace.
Diversification Opportunities for Playtika Holding and Bridger Aerospace
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Playtika and Bridger is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Bridger Aerospace Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridger Aerospace 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 Bridger Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridger Aerospace has no effect on the direction of Playtika Holding i.e., Playtika Holding and Bridger Aerospace go up and down completely randomly.
Pair Corralation between Playtika Holding and Bridger Aerospace
Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Bridger Aerospace. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 10.09 times less risky than Bridger Aerospace. The stock trades about -0.05 of its potential returns per unit of risk. The Bridger Aerospace Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 8.50 in Bridger Aerospace Group on September 12, 2024 and sell it today you would lose (1.00) from holding Bridger Aerospace Group or give up 11.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Playtika Holding Corp vs. Bridger Aerospace Group
Performance |
| Timeline |
| Playtika Holding Corp |
| Bridger Aerospace |
Playtika Holding and Bridger Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Bridger Aerospace
The main advantage of trading using opposite Playtika Holding and Bridger Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Bridger Aerospace 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 Bridger Aerospace will offset losses from the drop in Bridger Aerospace's long position.| Playtika Holding vs. GDEV Inc | Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
| Bridger Aerospace vs. Hasbro Inc | Bridger Aerospace vs. JD Sports Fashion | Bridger Aerospace vs. Mattel Inc | Bridger Aerospace vs. Supercom |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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