Correlation Between Playtika Holding and Swarmio Media
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Swarmio Media 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 Swarmio Media 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 Swarmio Media Holdings, you can compare the effects of market volatilities on Playtika Holding and Swarmio Media 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 Swarmio Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Swarmio Media.
Diversification Opportunities for Playtika Holding and Swarmio Media
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playtika and Swarmio is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Swarmio Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swarmio Media 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 Swarmio Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swarmio Media Holdings has no effect on the direction of Playtika Holding i.e., Playtika Holding and Swarmio Media go up and down completely randomly.
Pair Corralation between Playtika Holding and Swarmio Media
If you would invest 734.00 in Playtika Holding Corp on August 31, 2024 and sell it today you would earn a total of 99.00 from holding Playtika Holding Corp or generate 13.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Playtika Holding Corp vs. Swarmio Media Holdings
Performance |
| Timeline |
| Playtika Holding Corp |
| Swarmio Media Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Playtika Holding and Swarmio Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Swarmio Media
The main advantage of trading using opposite Playtika Holding and Swarmio Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Swarmio Media 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 Swarmio Media will offset losses from the drop in Swarmio Media's long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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