Correlation Between Playtika Holding and Gyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Gyre Therapeutics 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 Gyre Therapeutics 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 Gyre Therapeutics, you can compare the effects of market volatilities on Playtika Holding and Gyre Therapeutics 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 Gyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Gyre Therapeutics.
Diversification Opportunities for Playtika Holding and Gyre Therapeutics
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Playtika and Gyre is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Gyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gyre Therapeutics 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 Gyre Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gyre Therapeutics has no effect on the direction of Playtika Holding i.e., Playtika Holding and Gyre Therapeutics go up and down completely randomly.
Pair Corralation between Playtika Holding and Gyre Therapeutics
Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 0.58 times more return on investment than Gyre Therapeutics. However, Playtika Holding Corp is 1.72 times less risky than Gyre Therapeutics. It trades about 0.07 of its potential returns per unit of risk. Gyre Therapeutics is currently generating about -0.15 per unit of risk. If you would invest 469.00 in Playtika Holding Corp on January 11, 2025 and sell it today you would earn a total of 26.00 from holding Playtika Holding Corp or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Gyre Therapeutics
Performance |
| Timeline |
| Playtika Holding Corp |
| Gyre Therapeutics |
Playtika Holding and Gyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Gyre Therapeutics
The main advantage of trading using opposite Playtika Holding and Gyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Gyre Therapeutics 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 Gyre Therapeutics will offset losses from the drop in Gyre Therapeutics' long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| Gyre Therapeutics vs. Compania Cervecerias Unidas | Gyre Therapeutics vs. Nextera Energy | Gyre Therapeutics vs. Alliant Energy Corp | Gyre Therapeutics vs. NiSource |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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