Correlation Between Playtika Holding and Patterson UTI
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Patterson UTI 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 Patterson UTI 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 Patterson UTI Energy, you can compare the effects of market volatilities on Playtika Holding and Patterson UTI 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 Patterson UTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Patterson UTI.
Diversification Opportunities for Playtika Holding and Patterson UTI
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Playtika and Patterson is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Patterson UTI Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patterson UTI Energy 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 Patterson UTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patterson UTI Energy has no effect on the direction of Playtika Holding i.e., Playtika Holding and Patterson UTI go up and down completely randomly.
Pair Corralation between Playtika Holding and Patterson UTI
Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 0.97 times more return on investment than Patterson UTI. However, Playtika Holding Corp is 1.04 times less risky than Patterson UTI. It trades about -0.03 of its potential returns per unit of risk. Patterson UTI Energy is currently generating about -0.05 per unit of risk. If you would invest 1,190 in Playtika Holding Corp on September 12, 2024 and sell it today you would lose (363.00) from holding Playtika Holding Corp or give up 30.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Patterson UTI Energy
Performance |
| Timeline |
| Playtika Holding Corp |
| Patterson UTI Energy |
Playtika Holding and Patterson UTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Patterson UTI
The main advantage of trading using opposite Playtika Holding and Patterson UTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Patterson UTI 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 Patterson UTI will offset losses from the drop in Patterson UTI'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 |
| Patterson UTI vs. Nabors Industries | Patterson UTI vs. Borr Drilling | Patterson UTI vs. Transocean | Patterson UTI vs. Helmerich and Payne |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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