Correlation Between Playtika Holding and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Kite Realty 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 Kite Realty 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 Kite Realty Group, you can compare the effects of market volatilities on Playtika Holding and Kite Realty 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 Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Kite Realty.
Diversification Opportunities for Playtika Holding and Kite Realty
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Playtika and Kite is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Kite Realty Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kite Realty Group 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 Kite Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kite Realty Group has no effect on the direction of Playtika Holding i.e., Playtika Holding and Kite Realty go up and down completely randomly.
Pair Corralation between Playtika Holding and Kite Realty
Given the investment horizon of 90 days Playtika Holding is expected to generate 4.67 times less return on investment than Kite Realty. In addition to that, Playtika Holding is 1.65 times more volatile than Kite Realty Group. It trades about 0.01 of its total potential returns per unit of risk. Kite Realty Group is currently generating about 0.06 per unit of volatility. If you would invest 1,888 in Kite Realty Group on August 31, 2024 and sell it today you would earn a total of 897.00 from holding Kite Realty Group or generate 47.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Playtika Holding Corp vs. Kite Realty Group
Performance |
| Timeline |
| Playtika Holding Corp |
| Kite Realty Group |
Playtika Holding and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Kite Realty
The main advantage of trading using opposite Playtika Holding and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Kite Realty 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 Kite Realty will offset losses from the drop in Kite Realty's long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| Kite Realty vs. Site Centers Corp | Kite Realty vs. CBL Associates Properties | Kite Realty vs. Urban Edge Properties | Kite Realty vs. Acadia Realty Trust |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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