Correlation Between PLAYTIKA HOLDING and BII Railway

Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and BII Railway 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 PLAYTIKA HOLDING and BII Railway into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PLAYTIKA HOLDING DL 01 and BII Railway Transportation, you can compare the effects of market volatilities on PLAYTIKA HOLDING and BII Railway 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 PLAYTIKA HOLDING with a short position of BII Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and BII Railway.

Diversification Opportunities for PLAYTIKA HOLDING and BII Railway

-0.39

Correlation Coefficient

PLAYTIKA HOLDING  BII Railway

Very good diversification

The 3 months correlation between PLAYTIKA and BII is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and BII Railway Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BII Railway Transpor and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING DL 01 are associated (or correlated) with BII Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BII Railway Transpor has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and BII Railway go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and BII Railway

Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the BII Railway. But the stock apears to be less risky and, when comparing its historical volatility, PLAYTIKA HOLDING DL 01 is 1.01 times less risky than BII Railway. The stock trades about -0.13 of its potential returns per unit of risk. The BII Railway Transportation is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  2.46  in BII Railway Transportation on May 6, 2025 and sell it today you would earn a total of  0.54  from holding BII Railway Transportation or generate 21.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PLAYTIKA HOLDING DL 01  vs.  BII Railway Transportation

PLAYTIKA HOLDING

Risk-Adjusted Performance

Very Weak

Over the last 90 days PLAYTIKA HOLDING DL 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

BII Railway Transpor

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BII Railway Transportation are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, BII Railway reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PLAYTIKA HOLDING and BII Railway

The main advantage of trading using opposite PLAYTIKA HOLDING and BII Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING position performs unexpectedly, BII Railway 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 BII Railway will offset losses from the drop in BII Railway's long position.

The idea behind PLAYTIKA HOLDING DL 01 and BII Railway Transportation 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.