Correlation Between SunOpta and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both SunOpta 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 SunOpta and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Playtika Holding Corp, you can compare the effects of market volatilities on SunOpta 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 SunOpta with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Playtika Holding.
Diversification Opportunities for SunOpta and Playtika Holding
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SunOpta and Playtika is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta 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 SunOpta 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 SunOpta 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 SunOpta i.e., SunOpta and Playtika Holding go up and down completely randomly.
Pair Corralation between SunOpta and Playtika Holding
Given the investment horizon of 90 days SunOpta is expected to under-perform the Playtika Holding. In addition to that, SunOpta is 1.18 times more volatile than Playtika Holding Corp. It trades about -0.04 of its total potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.21 per unit of volatility. If you would invest 702.00 in Playtika Holding Corp on November 22, 2024 and sell it today you would earn a total of 36.00 from holding Playtika Holding Corp or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Playtika Holding Corp
Performance |
| Timeline |
| SunOpta |
| Playtika Holding Corp |
SunOpta and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Playtika Holding
The main advantage of trading using opposite SunOpta and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta 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.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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