Correlation Between Playtika Holding and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Barrick Gold 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 Barrick Gold 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 Barrick Gold Corp, you can compare the effects of market volatilities on Playtika Holding and Barrick Gold 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 Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Barrick Gold.
Diversification Opportunities for Playtika Holding and Barrick Gold
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playtika and Barrick is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Barrick Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold Corp 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 Barrick Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Gold Corp has no effect on the direction of Playtika Holding i.e., Playtika Holding and Barrick Gold go up and down completely randomly.
Pair Corralation between Playtika Holding and Barrick Gold
Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Barrick Gold. In addition to that, Playtika Holding is 1.08 times more volatile than Barrick Gold Corp. It trades about -0.28 of its total potential returns per unit of risk. Barrick Gold Corp is currently generating about -0.15 per unit of volatility. If you would invest 1,720 in Barrick Gold Corp on September 19, 2024 and sell it today you would lose (104.00) from holding Barrick Gold Corp or give up 6.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Barrick Gold Corp
Performance |
| Timeline |
| Playtika Holding Corp |
| Barrick Gold Corp |
Playtika Holding and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Barrick Gold
The main advantage of trading using opposite Playtika Holding and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Barrick Gold 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 Barrick Gold will offset losses from the drop in Barrick Gold's long position.The idea behind Playtika Holding Corp and Barrick Gold Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Pan American Silver | Barrick Gold vs. Wheaton Precious Metals | Barrick Gold vs. Kinross Gold |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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