Correlation Between Playtika Holding and BAXTER
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By analyzing existing cross correlation between Playtika Holding Corp and BAXTER INTL INC, you can compare the effects of market volatilities on Playtika Holding and BAXTER 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 BAXTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and BAXTER.
Diversification Opportunities for Playtika Holding and BAXTER
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playtika and BAXTER is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and BAXTER INTL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAXTER INTL INC 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 BAXTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAXTER INTL INC has no effect on the direction of Playtika Holding i.e., Playtika Holding and BAXTER go up and down completely randomly.
Pair Corralation between Playtika Holding and BAXTER
Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 1.02 times more return on investment than BAXTER. However, Playtika Holding is 1.02 times more volatile than BAXTER INTL INC. It trades about 0.34 of its potential returns per unit of risk. BAXTER INTL INC is currently generating about -0.21 per unit of risk. If you would invest 790.00 in Playtika Holding Corp on September 5, 2024 and sell it today you would earn a total of 71.00 from holding Playtika Holding Corp or generate 8.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Playtika Holding Corp vs. BAXTER INTL INC
Performance |
| Timeline |
| Playtika Holding Corp |
| BAXTER INTL INC |
Playtika Holding and BAXTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and BAXTER
The main advantage of trading using opposite Playtika Holding and BAXTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, BAXTER 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 BAXTER will offset losses from the drop in BAXTER's long position.| Playtika Holding vs. SohuCom | Playtika Holding vs. Gravity Co | Playtika Holding vs. NetEase | Playtika Holding vs. Golden Matrix Group |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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