Correlation Between Playtika Holding and SFL
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and SFL 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 SFL 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 SFL Corporation, you can compare the effects of market volatilities on Playtika Holding and SFL 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 SFL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and SFL.
Diversification Opportunities for Playtika Holding and SFL
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playtika and SFL is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and SFL Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFL Corporation 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 SFL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFL Corporation has no effect on the direction of Playtika Holding i.e., Playtika Holding and SFL go up and down completely randomly.
Pair Corralation between Playtika Holding and SFL
Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 0.93 times more return on investment than SFL. However, Playtika Holding Corp is 1.08 times less risky than SFL. It trades about -0.01 of its potential returns per unit of risk. SFL Corporation is currently generating about -0.1 per unit of risk. If you would invest 871.00 in Playtika Holding Corp on August 30, 2024 and sell it today you would lose (38.00) from holding Playtika Holding Corp or give up 4.36% 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. SFL Corp.
Performance |
| Timeline |
| Playtika Holding Corp |
| SFL Corporation |
Playtika Holding and SFL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and SFL
The main advantage of trading using opposite Playtika Holding and SFL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, SFL 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 SFL will offset losses from the drop in SFL's long position.| Playtika Holding vs. SohuCom | Playtika Holding vs. Snail, Class A | Playtika Holding vs. i3 Interactive | Playtika Holding vs. Bragg Gaming Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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