Correlation Between Playtika Holding and Brunswick
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Brunswick 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 Brunswick 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 Brunswick, you can compare the effects of market volatilities on Playtika Holding and Brunswick 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 Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Brunswick.
Diversification Opportunities for Playtika Holding and Brunswick
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Playtika and Brunswick is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick 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 Brunswick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick has no effect on the direction of Playtika Holding i.e., Playtika Holding and Brunswick go up and down completely randomly.
Pair Corralation between Playtika Holding and Brunswick
Given the investment horizon of 90 days Playtika Holding is expected to generate 3.08 times less return on investment than Brunswick. But when comparing it to its historical volatility, Playtika Holding Corp is 1.23 times less risky than Brunswick. It trades about 0.02 of its potential returns per unit of risk. Brunswick is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,637 in Brunswick on August 27, 2024 and sell it today you would earn a total of 945.00 from holding Brunswick or generate 12.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Brunswick
Performance |
| Timeline |
| Playtika Holding Corp |
| Brunswick |
Playtika Holding and Brunswick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Brunswick
The main advantage of trading using opposite Playtika Holding and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Brunswick 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 Brunswick will offset losses from the drop in Brunswick's long position.| Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
| Brunswick vs. MCBC Holdings | Brunswick vs. Winnebago Industries | Brunswick vs. LCI Industries | Brunswick vs. Thor Industries |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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