Correlation Between Playtika Holding and Marine Products
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Marine Products 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 Marine Products 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 Marine Products, you can compare the effects of market volatilities on Playtika Holding and Marine Products 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 Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Marine Products.
Diversification Opportunities for Playtika Holding and Marine Products
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Playtika and Marine is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products 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 Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of Playtika Holding i.e., Playtika Holding and Marine Products go up and down completely randomly.
Pair Corralation between Playtika Holding and Marine Products
Given the investment horizon of 90 days Playtika Holding is expected to generate 1.04 times less return on investment than Marine Products. But when comparing it to its historical volatility, Playtika Holding Corp is 1.48 times less risky than Marine Products. It trades about 0.26 of its potential returns per unit of risk. Marine Products is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 928.00 in Marine Products on September 2, 2024 and sell it today you would earn a total of 61.00 from holding Marine Products or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Marine Products
Performance |
| Timeline |
| Playtika Holding Corp |
| Marine Products |
Playtika Holding and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Marine Products
The main advantage of trading using opposite Playtika Holding and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| Playtika Holding vs. Gravity Co | Playtika Holding vs. NetEase | Playtika Holding vs. Snail, Class A | Playtika Holding vs. GameSquare Holdings |
| Marine Products vs. LCI Industries | Marine Products vs. MCBC Holdings | Marine Products vs. Winnebago Industries | Marine Products vs. Thor Industries |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |