Correlation Between Playtika Holding and Fluence Energy
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Fluence Energy 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 Fluence Energy 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 Fluence Energy, you can compare the effects of market volatilities on Playtika Holding and Fluence Energy 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 Fluence Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Fluence Energy.
Diversification Opportunities for Playtika Holding and Fluence Energy
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Playtika and Fluence is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Fluence Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluence Energy 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 Fluence Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluence Energy has no effect on the direction of Playtika Holding i.e., Playtika Holding and Fluence Energy go up and down completely randomly.
Pair Corralation between Playtika Holding and Fluence Energy
Given the investment horizon of 90 days Playtika Holding is expected to generate 1.7 times less return on investment than Fluence Energy. But when comparing it to its historical volatility, Playtika Holding Corp is 4.91 times less risky than Fluence Energy. It trades about 0.4 of its potential returns per unit of risk. Fluence Energy is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,081 in Fluence Energy on August 28, 2024 and sell it today you would earn a total of 269.00 from holding Fluence Energy or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Fluence Energy
Performance |
| Timeline |
| Playtika Holding Corp |
| Fluence Energy |
Playtika Holding and Fluence Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Fluence Energy
The main advantage of trading using opposite Playtika Holding and Fluence Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Fluence Energy 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 Fluence Energy will offset losses from the drop in Fluence Energy's long position.| Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
| Fluence Energy vs. Altus Power | Fluence Energy vs. Ormat Technologies | Fluence Energy vs. Enlight Renewable Energy | Fluence Energy vs. Advent Technologies Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |