Correlation Between Prosiebensat and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both Prosiebensat and PLAYTIKA HOLDING 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 Prosiebensat and PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosiebensat 1 Media and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on Prosiebensat and PLAYTIKA HOLDING 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 Prosiebensat with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosiebensat and PLAYTIKA HOLDING.
Diversification Opportunities for Prosiebensat and PLAYTIKA HOLDING
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prosiebensat and PLAYTIKA is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Prosiebensat 1 Media and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING and Prosiebensat 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 Prosiebensat 1 Media are associated (or correlated) with PLAYTIKA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTIKA HOLDING has no effect on the direction of Prosiebensat i.e., Prosiebensat and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between Prosiebensat and PLAYTIKA HOLDING
Assuming the 90 days trading horizon Prosiebensat 1 Media is expected to generate 1.13 times more return on investment than PLAYTIKA HOLDING. However, Prosiebensat is 1.13 times more volatile than PLAYTIKA HOLDING DL 01. It trades about 0.22 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about 0.14 per unit of risk. If you would invest 513.00 in Prosiebensat 1 Media on November 5, 2024 and sell it today you would earn a total of 48.00 from holding Prosiebensat 1 Media or generate 9.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prosiebensat 1 Media vs. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| Prosiebensat 1 Media |
| PLAYTIKA HOLDING |
Prosiebensat and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosiebensat and PLAYTIKA HOLDING
The main advantage of trading using opposite Prosiebensat and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosiebensat position performs unexpectedly, PLAYTIKA HOLDING 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 PLAYTIKA HOLDING will offset losses from the drop in PLAYTIKA HOLDING's long position.| Prosiebensat vs. IMPERIAL TOBACCO | Prosiebensat vs. BAKED GAMES SA | Prosiebensat vs. UNIVERSAL MUSIC GROUP | Prosiebensat vs. GEAR4MUSIC LS 10 |
| PLAYTIKA HOLDING vs. Nintendo Co | PLAYTIKA HOLDING vs. Nintendo Co | PLAYTIKA HOLDING vs. Sea Limited | PLAYTIKA HOLDING vs. Electronic Arts |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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