Correlation Between Playtika Holding and Aeye
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Aeye 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 Aeye 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 Aeye Inc, you can compare the effects of market volatilities on Playtika Holding and Aeye 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 Aeye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Aeye.
Diversification Opportunities for Playtika Holding and Aeye
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playtika and Aeye is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Aeye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeye Inc 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 Aeye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeye Inc has no effect on the direction of Playtika Holding i.e., Playtika Holding and Aeye go up and down completely randomly.
Pair Corralation between Playtika Holding and Aeye
Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Aeye. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 4.33 times less risky than Aeye. The stock trades about -0.01 of its potential returns per unit of risk. The Aeye Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 554.00 in Aeye Inc on August 31, 2024 and sell it today you would lose (441.00) from holding Aeye Inc or give up 79.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Aeye Inc
Performance |
| Timeline |
| Playtika Holding Corp |
| Aeye Inc |
Playtika Holding and Aeye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Aeye
The main advantage of trading using opposite Playtika Holding and Aeye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Aeye 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 Aeye will offset losses from the drop in Aeye's long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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