Correlation Between PLAYTIKA HOLDING and Esprinet SpA

Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING and Esprinet SpA 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 Esprinet SpA 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 Esprinet SpA, you can compare the effects of market volatilities on PLAYTIKA HOLDING and Esprinet SpA 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 Esprinet SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and Esprinet SpA.

Diversification Opportunities for PLAYTIKA HOLDING and Esprinet SpA

-0.76

Correlation Coefficient

PLAYTIKA HOLDING  Esprinet SpA

Pay attention - limited upside

The 3 months correlation between PLAYTIKA and Esprinet is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and Esprinet SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Esprinet SpA 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 Esprinet SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Esprinet SpA has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and Esprinet SpA go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and Esprinet SpA

Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the Esprinet SpA. In addition to that, PLAYTIKA HOLDING is 1.17 times more volatile than Esprinet SpA. It trades about -0.29 of its total potential returns per unit of risk. Esprinet SpA is currently generating about 0.06 per unit of volatility. If you would invest  418.00  in Esprinet SpA on September 22, 2024 and sell it today you would earn a total of  9.00  from holding Esprinet SpA or generate 2.15% return on investment over 90 days.

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

PLAYTIKA HOLDING DL 01  vs.  Esprinet SpA

PLAYTIKA HOLDING

Risk-Adjusted Performance

0 of 100

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 nearly stable basic indicators, PLAYTIKA HOLDING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Esprinet SpA

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with PLAYTIKA HOLDING and Esprinet SpA

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

The idea behind PLAYTIKA HOLDING DL 01 and Esprinet SpA 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.