Correlation Between Playtika Holding and TKO Group
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and TKO Group 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 TKO Group 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 TKO Group Holdings,, you can compare the effects of market volatilities on Playtika Holding and TKO Group 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 TKO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and TKO Group.
Diversification Opportunities for Playtika Holding and TKO Group
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Playtika and TKO is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and TKO Group Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TKO Group 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 TKO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TKO Group Holdings, has no effect on the direction of Playtika Holding i.e., Playtika Holding and TKO Group go up and down completely randomly.
Pair Corralation between Playtika Holding and TKO Group
Given the investment horizon of 90 days Playtika Holding is expected to generate 1.83 times less return on investment than TKO Group. But when comparing it to its historical volatility, Playtika Holding Corp is 1.6 times less risky than TKO Group. It trades about 0.33 of its potential returns per unit of risk. TKO Group Holdings, is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 11,817 in TKO Group Holdings, on September 4, 2024 and sell it today you would earn a total of 1,887 from holding TKO Group Holdings, or generate 15.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. TKO Group Holdings,
Performance |
| Timeline |
| Playtika Holding Corp |
| TKO Group Holdings, |
Playtika Holding and TKO Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and TKO Group
The main advantage of trading using opposite Playtika Holding and TKO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, TKO Group 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 TKO Group will offset losses from the drop in TKO Group's long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| TKO Group vs. Playtika Holding Corp | TKO Group vs. Canlan Ice Sports | TKO Group vs. Cumberland Pharmaceuticals | TKO Group vs. Omni Health |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |