Correlation Between Playtika Holding and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Kandi Technologies 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 Kandi Technologies 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 Kandi Technologies Group, you can compare the effects of market volatilities on Playtika Holding and Kandi Technologies 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 Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Kandi Technologies.
Diversification Opportunities for Playtika Holding and Kandi Technologies
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Playtika and Kandi is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies 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 Kandi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kandi Technologies has no effect on the direction of Playtika Holding i.e., Playtika Holding and Kandi Technologies go up and down completely randomly.
Pair Corralation between Playtika Holding and Kandi Technologies
Given the investment horizon of 90 days Playtika Holding is expected to generate 1.1 times less return on investment than Kandi Technologies. But when comparing it to its historical volatility, Playtika Holding Corp is 3.27 times less risky than Kandi Technologies. It trades about 0.24 of its potential returns per unit of risk. Kandi Technologies Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 115.00 in Kandi Technologies Group on November 18, 2024 and sell it today you would earn a total of 6.00 from holding Kandi Technologies Group or generate 5.22% 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. Kandi Technologies Group
Performance |
| Timeline |
| Playtika Holding Corp |
| Kandi Technologies |
Playtika Holding and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Kandi Technologies
The main advantage of trading using opposite Playtika Holding and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Kandi Technologies 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 Kandi Technologies will offset losses from the drop in Kandi Technologies' long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| Kandi Technologies vs. Hyliion Holdings Corp | Kandi Technologies vs. Foresight Autonomous Holdings | Kandi Technologies vs. Aeva Technologies, Common | Kandi Technologies vs. Aeye 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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