Correlation Between Playtika Holding and Sunnova Energy
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Sunnova Energy 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 Sunnova Energy 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 Sunnova Energy International, you can compare the effects of market volatilities on Playtika Holding and Sunnova Energy 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 Sunnova Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Sunnova Energy.
Diversification Opportunities for Playtika Holding and Sunnova Energy
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playtika and Sunnova is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Sunnova Energy International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunnova Energy Inter 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 Sunnova Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunnova Energy Inter has no effect on the direction of Playtika Holding i.e., Playtika Holding and Sunnova Energy go up and down completely randomly.
Pair Corralation between Playtika Holding and Sunnova Energy
Given the investment horizon of 90 days Playtika Holding is expected to generate 3.46 times less return on investment than Sunnova Energy. But when comparing it to its historical volatility, Playtika Holding Corp is 14.79 times less risky than Sunnova Energy. It trades about 0.4 of its potential returns per unit of risk. Sunnova Energy International is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 535.00 in Sunnova Energy International on August 28, 2024 and sell it today you would lose (1.00) from holding Sunnova Energy International or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Sunnova Energy International
Performance |
| Timeline |
| Playtika Holding Corp |
| Sunnova Energy Inter |
Playtika Holding and Sunnova Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Sunnova Energy
The main advantage of trading using opposite Playtika Holding and Sunnova Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Sunnova Energy 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 Sunnova Energy will offset losses from the drop in Sunnova Energy's long position.| Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
| Sunnova Energy vs. Enphase Energy | Sunnova Energy vs. First Solar | Sunnova Energy vs. SolarEdge Technologies | Sunnova Energy vs. JinkoSolar Holding |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |