Correlation Between Playtika Holding and Sega Sammy
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Sega Sammy 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 Sega Sammy 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 Sega Sammy Holdings, you can compare the effects of market volatilities on Playtika Holding and Sega Sammy 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 Sega Sammy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Sega Sammy.
Diversification Opportunities for Playtika Holding and Sega Sammy
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Playtika and Sega is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Sega Sammy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sega Sammy Holdings 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 Sega Sammy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sega Sammy Holdings has no effect on the direction of Playtika Holding i.e., Playtika Holding and Sega Sammy go up and down completely randomly.
Pair Corralation between Playtika Holding and Sega Sammy
Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 0.38 times more return on investment than Sega Sammy. However, Playtika Holding Corp is 2.6 times less risky than Sega Sammy. It trades about 0.4 of its potential returns per unit of risk. Sega Sammy Holdings is currently generating about -0.12 per unit of risk. If you would invest 791.00 in Playtika Holding Corp on August 28, 2024 and sell it today you would earn a total of 71.00 from holding Playtika Holding Corp or generate 8.98% 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. Sega Sammy Holdings
Performance |
| Timeline |
| Playtika Holding Corp |
| Sega Sammy Holdings |
Playtika Holding and Sega Sammy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Sega Sammy
The main advantage of trading using opposite Playtika Holding and Sega Sammy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Sega Sammy 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 Sega Sammy will offset losses from the drop in Sega Sammy's long position.| Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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