Correlation Between Playtika Holding and Integral
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Integral 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 Integral 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 Integral Ad Science, you can compare the effects of market volatilities on Playtika Holding and Integral 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 Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Integral.
Diversification Opportunities for Playtika Holding and Integral
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Playtika and Integral is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Playtika Holding i.e., Playtika Holding and Integral go up and down completely randomly.
Pair Corralation between Playtika Holding and Integral
Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 0.27 times more return on investment than Integral. However, Playtika Holding Corp is 3.64 times less risky than Integral. It trades about 0.47 of its potential returns per unit of risk. Integral Ad Science is currently generating about 0.09 per unit of risk. If you would invest 761.00 in Playtika Holding Corp on August 24, 2024 and sell it today you would earn a total of 99.00 from holding Playtika Holding Corp or generate 13.01% 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. Integral Ad Science
Performance |
| Timeline |
| Playtika Holding Corp |
| Integral Ad Science |
Playtika Holding and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Integral
The main advantage of trading using opposite Playtika Holding and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral'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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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