Correlation Between Playtika Holding and Gravity
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Gravity 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 Gravity 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 Gravity Co, you can compare the effects of market volatilities on Playtika Holding and Gravity 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 Gravity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Gravity.
Diversification Opportunities for Playtika Holding and Gravity
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Playtika and Gravity is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Gravity Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gravity 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 Gravity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gravity has no effect on the direction of Playtika Holding i.e., Playtika Holding and Gravity go up and down completely randomly.
Pair Corralation between Playtika Holding and Gravity
Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 0.8 times more return on investment than Gravity. However, Playtika Holding Corp is 1.25 times less risky than Gravity. It trades about 0.09 of its potential returns per unit of risk. Gravity Co is currently generating about 0.01 per unit of risk. If you would invest 700.00 in Playtika Holding Corp on November 4, 2024 and sell it today you would earn a total of 17.00 from holding Playtika Holding Corp or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Gravity Co
Performance |
| Timeline |
| Playtika Holding Corp |
| Gravity |
Playtika Holding and Gravity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Gravity
The main advantage of trading using opposite Playtika Holding and Gravity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Gravity 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 Gravity will offset losses from the drop in Gravity's long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| Gravity vs. Doubledown Interactive Co | Gravity vs. Playtika Holding Corp | Gravity vs. NetEase | Gravity vs. SohuCom |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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