Correlation Between Playtika Holding and Marchex
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Marchex 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 Marchex 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 Marchex, you can compare the effects of market volatilities on Playtika Holding and Marchex 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 Marchex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Marchex.
Diversification Opportunities for Playtika Holding and Marchex
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Playtika and Marchex is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex 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 Marchex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marchex has no effect on the direction of Playtika Holding i.e., Playtika Holding and Marchex go up and down completely randomly.
Pair Corralation between Playtika Holding and Marchex
Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Marchex. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 1.5 times less risky than Marchex. The stock trades about 0.0 of its potential returns per unit of risk. The Marchex is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 197.00 in Marchex on August 27, 2024 and sell it today you would lose (32.00) from holding Marchex or give up 16.24% 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. Marchex
Performance |
| Timeline |
| Playtika Holding Corp |
| Marchex |
Playtika Holding and Marchex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Marchex
The main advantage of trading using opposite Playtika Holding and Marchex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Marchex 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 Marchex will offset losses from the drop in Marchex's long position.| Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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