Correlation Between Playtika Holding and Konami Holdings
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Konami Holdings 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 Konami Holdings 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 Konami Holdings, you can compare the effects of market volatilities on Playtika Holding and Konami Holdings 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 Konami Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Konami Holdings.
Diversification Opportunities for Playtika Holding and Konami Holdings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Playtika and Konami is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Konami Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konami Holdings 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 Konami Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konami Holdings has no effect on the direction of Playtika Holding i.e., Playtika Holding and Konami Holdings go up and down completely randomly.
Pair Corralation between Playtika Holding and Konami Holdings
Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 1.56 times more return on investment than Konami Holdings. However, Playtika Holding is 1.56 times more volatile than Konami Holdings. It trades about 0.12 of its potential returns per unit of risk. Konami Holdings is currently generating about -0.02 per unit of risk. If you would invest 676.00 in Playtika Holding Corp on October 22, 2024 and sell it today you would earn a total of 24.00 from holding Playtika Holding Corp or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Playtika Holding Corp vs. Konami Holdings
Performance |
| Timeline |
| Playtika Holding Corp |
| Konami Holdings |
Playtika Holding and Konami Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Konami Holdings
The main advantage of trading using opposite Playtika Holding and Konami Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Konami Holdings 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 Konami Holdings will offset losses from the drop in Konami Holdings' long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| Konami Holdings vs. NEXON Co | Konami Holdings vs. Sega Sammy Holdings | Konami Holdings vs. Capcom Co Ltd | Konami Holdings vs. CD Projekt SA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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