Correlation Between Playtika Holding and Wabash National
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Wabash National 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 Wabash National 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 Wabash National, you can compare the effects of market volatilities on Playtika Holding and Wabash National 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 Wabash National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Wabash National.
Diversification Opportunities for Playtika Holding and Wabash National
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Playtika and Wabash is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Wabash National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wabash National 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 Wabash National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wabash National has no effect on the direction of Playtika Holding i.e., Playtika Holding and Wabash National go up and down completely randomly.
Pair Corralation between Playtika Holding and Wabash National
Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 0.47 times more return on investment than Wabash National. However, Playtika Holding Corp is 2.13 times less risky than Wabash National. It trades about 0.36 of its potential returns per unit of risk. Wabash National is currently generating about 0.11 per unit of risk. If you would invest 791.00 in Playtika Holding Corp on August 27, 2024 and sell it today you would earn a total of 62.00 from holding Playtika Holding Corp or generate 7.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Wabash National
Performance |
| Timeline |
| Playtika Holding Corp |
| Wabash National |
Playtika Holding and Wabash National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Wabash National
The main advantage of trading using opposite Playtika Holding and Wabash National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Wabash National 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 Wabash National will offset losses from the drop in Wabash National's long position.| Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
| Wabash National vs. Rev Group | Wabash National vs. Gencor Industries | Wabash National vs. Alamo Group | Wabash National vs. Columbus McKinnon |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |