Correlation Between Axcelis Technologies and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies 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 Axcelis Technologies and PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on Axcelis Technologies 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 Axcelis Technologies with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and PLAYTIKA HOLDING.
Diversification Opportunities for Axcelis Technologies and PLAYTIKA HOLDING
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axcelis and PLAYTIKA is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies 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 Axcelis Technologies 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 Axcelis Technologies 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 Axcelis Technologies i.e., Axcelis Technologies and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between Axcelis Technologies and PLAYTIKA HOLDING
Assuming the 90 days trading horizon Axcelis Technologies is expected to under-perform the PLAYTIKA HOLDING. In addition to that, Axcelis Technologies is 1.22 times more volatile than PLAYTIKA HOLDING DL 01. It trades about -0.18 of its total potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about 0.18 per unit of volatility. If you would invest 715.00 in PLAYTIKA HOLDING DL 01 on September 4, 2024 and sell it today you would earn a total of 65.00 from holding PLAYTIKA HOLDING DL 01 or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Axcelis Technologies vs. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| Axcelis Technologies |
| PLAYTIKA HOLDING |
Axcelis Technologies and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and PLAYTIKA HOLDING
The main advantage of trading using opposite Axcelis Technologies and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies 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.| Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc |
| PLAYTIKA HOLDING vs. Nintendo Co | PLAYTIKA HOLDING vs. Nintendo Co | PLAYTIKA HOLDING vs. Sea Limited | PLAYTIKA HOLDING vs. Take Two Interactive Software |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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