Correlation Between Playtika Holding and Funko
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Funko 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 Funko 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 Funko Inc, you can compare the effects of market volatilities on Playtika Holding and Funko 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 Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Funko.
Diversification Opportunities for Playtika Holding and Funko
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Playtika and Funko is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc 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 Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of Playtika Holding i.e., Playtika Holding and Funko go up and down completely randomly.
Pair Corralation between Playtika Holding and Funko
Given the investment horizon of 90 days Playtika Holding is expected to generate 1.05 times less return on investment than Funko. But when comparing it to its historical volatility, Playtika Holding Corp is 2.11 times less risky than Funko. It trades about 0.16 of its potential returns per unit of risk. Funko Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,007 in Funko Inc on August 28, 2024 and sell it today you would earn a total of 132.00 from holding Funko Inc or generate 13.11% 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. Funko Inc
Performance |
| Timeline |
| Playtika Holding Corp |
| Funko Inc |
Playtika Holding and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Funko
The main advantage of trading using opposite Playtika Holding and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Funko 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 Funko will offset losses from the drop in Funko's long position.| Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |