Correlation Between ATRenew and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both ATRenew 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 ATRenew and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRenew Inc DRC and Playtika Holding Corp, you can compare the effects of market volatilities on ATRenew 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 ATRenew with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRenew and Playtika Holding.
Diversification Opportunities for ATRenew and Playtika Holding
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ATRenew and Playtika is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ATRenew Inc DRC and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp and ATRenew 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 ATRenew Inc DRC 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 Corp has no effect on the direction of ATRenew i.e., ATRenew and Playtika Holding go up and down completely randomly.
Pair Corralation between ATRenew and Playtika Holding
Given the investment horizon of 90 days ATRenew Inc DRC is expected to generate 4.62 times more return on investment than Playtika Holding. However, ATRenew is 4.62 times more volatile than Playtika Holding Corp. It trades about 0.31 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.3 per unit of risk. If you would invest 238.00 in ATRenew Inc DRC on September 1, 2024 and sell it today you would earn a total of 91.00 from holding ATRenew Inc DRC or generate 38.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRenew Inc DRC vs. Playtika Holding Corp
Performance |
| Timeline |
| ATRenew Inc DRC |
| Playtika Holding Corp |
ATRenew and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRenew and Playtika Holding
The main advantage of trading using opposite ATRenew and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRenew 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.The idea behind ATRenew Inc DRC and Playtika Holding Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Playtika Holding vs. Gravity Co | Playtika Holding vs. NetEase | Playtika Holding vs. Snail, Class A | Playtika Holding vs. GameSquare Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |