Correlation Between Playtika Holding and Sphere Entertainment
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Sphere Entertainment 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 Sphere Entertainment 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 Sphere Entertainment Co, you can compare the effects of market volatilities on Playtika Holding and Sphere Entertainment 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 Sphere Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Sphere Entertainment.
Diversification Opportunities for Playtika Holding and Sphere Entertainment
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Playtika and Sphere is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Sphere Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sphere Entertainment 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 Sphere Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sphere Entertainment has no effect on the direction of Playtika Holding i.e., Playtika Holding and Sphere Entertainment go up and down completely randomly.
Pair Corralation between Playtika Holding and Sphere Entertainment
Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 0.43 times more return on investment than Sphere Entertainment. However, Playtika Holding Corp is 2.32 times less risky than Sphere Entertainment. It trades about 0.4 of its potential returns per unit of risk. Sphere Entertainment Co is currently generating about -0.16 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Sphere Entertainment Co
Performance |
| Timeline |
| Playtika Holding Corp |
| Sphere Entertainment |
Playtika Holding and Sphere Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Sphere Entertainment
The main advantage of trading using opposite Playtika Holding and Sphere Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Sphere Entertainment 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 Sphere Entertainment will offset losses from the drop in Sphere Entertainment's long position.| Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
| Sphere Entertainment vs. Tandem Diabetes Care | Sphere Entertainment vs. Weyco Group | Sphere Entertainment vs. Viemed Healthcare | Sphere Entertainment vs. Amgen 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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