Correlation Between Playtika Holding and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Sweetgreen 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 Sweetgreen 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 Sweetgreen, you can compare the effects of market volatilities on Playtika Holding and Sweetgreen 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 Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Sweetgreen.
Diversification Opportunities for Playtika Holding and Sweetgreen
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Playtika and Sweetgreen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen 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 Sweetgreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweetgreen has no effect on the direction of Playtika Holding i.e., Playtika Holding and Sweetgreen go up and down completely randomly.
Pair Corralation between Playtika Holding and Sweetgreen
Given the investment horizon of 90 days Playtika Holding is expected to generate 1.5 times less return on investment than Sweetgreen. But when comparing it to its historical volatility, Playtika Holding Corp is 3.93 times less risky than Sweetgreen. It trades about 0.26 of its potential returns per unit of risk. Sweetgreen is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,802 in Sweetgreen on September 2, 2024 and sell it today you would earn a total of 296.00 from holding Sweetgreen or generate 7.79% 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. Sweetgreen
Performance |
| Timeline |
| Playtika Holding Corp |
| Sweetgreen |
Playtika Holding and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Sweetgreen
The main advantage of trading using opposite Playtika Holding and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Sweetgreen 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 Sweetgreen will offset losses from the drop in Sweetgreen's long position.| Playtika Holding vs. Gravity Co | Playtika Holding vs. NetEase | Playtika Holding vs. Snail, Class A | Playtika Holding vs. GameSquare Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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