Correlation Between Playtika Holding and Zedge
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Zedge 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 Zedge 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 Zedge Inc, you can compare the effects of market volatilities on Playtika Holding and Zedge 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 Zedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Zedge.
Diversification Opportunities for Playtika Holding and Zedge
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playtika and Zedge is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Zedge Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedge 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 Zedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedge Inc has no effect on the direction of Playtika Holding i.e., Playtika Holding and Zedge go up and down completely randomly.
Pair Corralation between Playtika Holding and Zedge
Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 0.3 times more return on investment than Zedge. However, Playtika Holding Corp is 3.34 times less risky than Zedge. It trades about 0.4 of its potential returns per unit of risk. Zedge Inc is currently generating about -0.19 per unit of risk. 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Zedge Inc
Performance |
| Timeline |
| Playtika Holding Corp |
| Zedge Inc |
Playtika Holding and Zedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Zedge
The main advantage of trading using opposite Playtika Holding and Zedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Zedge 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 Zedge will offset losses from the drop in Zedge's long position.| Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| 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 | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |