Correlation Between Playtika Holding and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Perseus Mining 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 Perseus Mining 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 Perseus Mining Limited, you can compare the effects of market volatilities on Playtika Holding and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Perseus Mining.
Diversification Opportunities for Playtika Holding and Perseus Mining
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Playtika and Perseus is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Playtika Holding i.e., Playtika Holding and Perseus Mining go up and down completely randomly.
Pair Corralation between Playtika Holding and Perseus Mining
Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Perseus Mining. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 1.94 times less risky than Perseus Mining. The stock trades about -0.05 of its potential returns per unit of risk. The Perseus Mining Limited is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 160.00 in Perseus Mining Limited on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Perseus Mining Limited or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Perseus Mining Limited
Performance |
| Timeline |
| Playtika Holding Corp |
| Perseus Mining |
Playtika Holding and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Perseus Mining
The main advantage of trading using opposite Playtika Holding and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| Playtika Holding vs. GDEV Inc | Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
| Perseus Mining vs. Revival Gold | Perseus Mining vs. Galiano Gold | Perseus Mining vs. US Gold Corp | Perseus Mining vs. HUMANA INC |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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