Correlation Between Playtika Holding and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Xponential Fitness 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 Xponential Fitness 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 Xponential Fitness, you can compare the effects of market volatilities on Playtika Holding and Xponential Fitness 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 Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Xponential Fitness.
Diversification Opportunities for Playtika Holding and Xponential Fitness
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Playtika and Xponential is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness 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 Xponential Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xponential Fitness has no effect on the direction of Playtika Holding i.e., Playtika Holding and Xponential Fitness go up and down completely randomly.
Pair Corralation between Playtika Holding and Xponential Fitness
Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Xponential Fitness. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 2.35 times less risky than Xponential Fitness. The stock trades about 0.0 of its potential returns per unit of risk. The Xponential Fitness is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,894 in Xponential Fitness on August 29, 2024 and sell it today you would lose (1,355) from holding Xponential Fitness or give up 46.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Xponential Fitness
Performance |
| Timeline |
| Playtika Holding Corp |
| Xponential Fitness |
Playtika Holding and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Xponential Fitness
The main advantage of trading using opposite Playtika Holding and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Xponential Fitness 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 Xponential Fitness will offset losses from the drop in Xponential Fitness' long position.| Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |