Correlation Between Playtika Holding and Freedom Bank
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Freedom Bank 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 Freedom Bank 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 Freedom Bank of, you can compare the effects of market volatilities on Playtika Holding and Freedom Bank 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 Freedom Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Freedom Bank.
Diversification Opportunities for Playtika Holding and Freedom Bank
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Playtika and Freedom is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Freedom Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Bank 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 Freedom Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Bank has no effect on the direction of Playtika Holding i.e., Playtika Holding and Freedom Bank go up and down completely randomly.
Pair Corralation between Playtika Holding and Freedom Bank
Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 2.34 times more return on investment than Freedom Bank. However, Playtika Holding is 2.34 times more volatile than Freedom Bank of. It trades about 0.04 of its potential returns per unit of risk. Freedom Bank of is currently generating about 0.06 per unit of risk. If you would invest 764.00 in Playtika Holding Corp on September 3, 2024 and sell it today you would earn a total of 78.00 from holding Playtika Holding Corp or generate 10.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.84% |
| Values | Daily Returns |
Playtika Holding Corp vs. Freedom Bank of
Performance |
| Timeline |
| Playtika Holding Corp |
| Freedom Bank |
Playtika Holding and Freedom Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Freedom Bank
The main advantage of trading using opposite Playtika Holding and Freedom Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Freedom Bank 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 Freedom Bank will offset losses from the drop in Freedom Bank's long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| Freedom Bank vs. Western Asset Global | Freedom Bank vs. Invesco Trust For | Freedom Bank vs. Logan Ridge Finance | Freedom Bank vs. Invesco Advantage MIT |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |