Correlation Between Playtika Holding and Gentex
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Gentex 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 Gentex 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 Gentex, you can compare the effects of market volatilities on Playtika Holding and Gentex 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 Gentex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Gentex.
Diversification Opportunities for Playtika Holding and Gentex
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Playtika and Gentex is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex 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 Gentex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentex has no effect on the direction of Playtika Holding i.e., Playtika Holding and Gentex go up and down completely randomly.
Pair Corralation between Playtika Holding and Gentex
Given the investment horizon of 90 days Playtika Holding is expected to generate 1.14 times less return on investment than Gentex. In addition to that, Playtika Holding is 1.88 times more volatile than Gentex. It trades about 0.01 of its total potential returns per unit of risk. Gentex is currently generating about 0.03 per unit of volatility. If you would invest 2,658 in Gentex on September 3, 2024 and sell it today you would earn a total of 412.00 from holding Gentex or generate 15.5% 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. Gentex
Performance |
| Timeline |
| Playtika Holding Corp |
| Gentex |
Playtika Holding and Gentex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Gentex
The main advantage of trading using opposite Playtika Holding and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Gentex 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 Gentex will offset losses from the drop in Gentex's long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
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 CEOs Directory module to screen CEOs from public companies around the world.
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