Correlation Between Playtika Holding and Golden Matrix
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Golden Matrix 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 Golden Matrix 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 Golden Matrix Group, you can compare the effects of market volatilities on Playtika Holding and Golden Matrix 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 Golden Matrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Golden Matrix.
Diversification Opportunities for Playtika Holding and Golden Matrix
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Playtika and Golden is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Golden Matrix Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Matrix Group 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 Golden Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Matrix Group has no effect on the direction of Playtika Holding i.e., Playtika Holding and Golden Matrix go up and down completely randomly.
Pair Corralation between Playtika Holding and Golden Matrix
Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 0.39 times more return on investment than Golden Matrix. However, Playtika Holding Corp is 2.55 times less risky than Golden Matrix. It trades about 0.24 of its potential returns per unit of risk. Golden Matrix Group is currently generating about -0.15 per unit of risk. If you would invest 700.00 in Playtika Holding Corp on November 18, 2024 and sell it today you would earn a total of 42.00 from holding Playtika Holding Corp or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Golden Matrix Group
Performance |
| Timeline |
| Playtika Holding Corp |
| Golden Matrix Group |
Playtika Holding and Golden Matrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Golden Matrix
The main advantage of trading using opposite Playtika Holding and Golden Matrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Golden Matrix 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 Golden Matrix will offset losses from the drop in Golden Matrix's long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| Golden Matrix vs. i3 Interactive | Golden Matrix vs. GameSquare Holdings | Golden Matrix vs. Playstudios | Golden Matrix vs. Snail, Class A |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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