Correlation Between Sega Sammy and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Sega Sammy 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 Sega Sammy and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sega Sammy Holdings and Playtika Holding Corp, you can compare the effects of market volatilities on Sega Sammy 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 Sega Sammy with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sega Sammy and Playtika Holding.
Diversification Opportunities for Sega Sammy and Playtika Holding
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sega and Playtika is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sega Sammy Holdings 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 Sega Sammy 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 Sega Sammy Holdings 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 Sega Sammy i.e., Sega Sammy and Playtika Holding go up and down completely randomly.
Pair Corralation between Sega Sammy and Playtika Holding
Assuming the 90 days horizon Sega Sammy Holdings is expected to generate 2.2 times more return on investment than Playtika Holding. However, Sega Sammy is 2.2 times more volatile than Playtika Holding Corp. It trades about 0.13 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.12 per unit of risk. If you would invest 422.00 in Sega Sammy Holdings on October 22, 2024 and sell it today you would earn a total of 33.00 from holding Sega Sammy Holdings or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sega Sammy Holdings vs. Playtika Holding Corp
Performance |
| Timeline |
| Sega Sammy Holdings |
| Playtika Holding Corp |
Sega Sammy and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sega Sammy and Playtika Holding
The main advantage of trading using opposite Sega Sammy and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sega Sammy 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.| Sega Sammy vs. Nexon Co Ltd | Sega Sammy vs. Square Enix Holdings | Sega Sammy vs. Nintendo Co | Sega Sammy vs. Square Enix Holdings |
| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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