Correlation Between Playtika Holding and Cimpress
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Cimpress 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 Cimpress 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 Cimpress NV, you can compare the effects of market volatilities on Playtika Holding and Cimpress 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 Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Cimpress.
Diversification Opportunities for Playtika Holding and Cimpress
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Playtika and Cimpress is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV 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 Cimpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimpress NV has no effect on the direction of Playtika Holding i.e., Playtika Holding and Cimpress go up and down completely randomly.
Pair Corralation between Playtika Holding and Cimpress
Given the investment horizon of 90 days Playtika Holding is expected to generate 1.7 times less return on investment than Cimpress. But when comparing it to its historical volatility, Playtika Holding Corp is 1.22 times less risky than Cimpress. It trades about 0.02 of its potential returns per unit of risk. Cimpress NV is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,390 in Cimpress NV on September 2, 2024 and sell it today you would earn a total of 640.00 from holding Cimpress NV or generate 8.66% 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. Cimpress NV
Performance |
| Timeline |
| Playtika Holding Corp |
| Cimpress NV |
Playtika Holding and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Cimpress
The main advantage of trading using opposite Playtika Holding and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Cimpress 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 Cimpress will offset losses from the drop in Cimpress' long position.| Playtika Holding vs. Gravity Co | Playtika Holding vs. NetEase | Playtika Holding vs. Snail, Class A | Playtika Holding vs. GameSquare Holdings |
| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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