Correlation Between Playtika Holding and Elkhorn
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Elkhorn 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 Elkhorn 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 Elkhorn, you can compare the effects of market volatilities on Playtika Holding and Elkhorn 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 Elkhorn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Elkhorn.
Diversification Opportunities for Playtika Holding and Elkhorn
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Playtika and Elkhorn is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Elkhorn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elkhorn 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 Elkhorn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elkhorn has no effect on the direction of Playtika Holding i.e., Playtika Holding and Elkhorn go up and down completely randomly.
Pair Corralation between Playtika Holding and Elkhorn
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 Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Playtika Holding Corp vs. Elkhorn
Performance |
| Timeline |
| Playtika Holding Corp |
| Elkhorn |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Playtika Holding and Elkhorn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Elkhorn
The main advantage of trading using opposite Playtika Holding and Elkhorn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Elkhorn 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 Elkhorn will offset losses from the drop in Elkhorn's long position.| Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
| Elkhorn vs. Jamf Holding | Elkhorn vs. Olo Inc | Elkhorn vs. Global Mofy Metaverse | Elkhorn vs. Aquagold International |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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