Correlation Between Gaxosai and Playtika Holding

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

By analyzing existing cross correlation between Gaxosai and Playtika Holding Corp, you can compare the effects of market volatilities on Gaxosai 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 Gaxosai with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaxosai and Playtika Holding.

Diversification Opportunities for Gaxosai and Playtika Holding

-0.52

Correlation Coefficient

Gaxosai  Playtika Holding

Excellent diversification

The 3 months correlation between Gaxosai and Playtika is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gaxosai 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 Gaxosai 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 Gaxosai 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 Gaxosai i.e., Gaxosai and Playtika Holding go up and down completely randomly.

Pair Corralation between Gaxosai and Playtika Holding

Given the investment horizon of 90 days Gaxosai is expected to under-perform the Playtika Holding. In addition to that, Gaxosai is 4.18 times more volatile than Playtika Holding Corp. It trades about -0.19 of its total potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.14 per unit of volatility. If you would invest  737.00  in Playtika Holding Corp on August 21, 2024 and sell it today you would earn a total of  108.00  from holding Playtika Holding Corp or generate 14.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Gaxosai  vs.  Playtika Holding Corp

Gaxosai

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gaxosai has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Playtika Holding Corp

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Playtika Holding Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Playtika Holding disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gaxosai and Playtika Holding

The main advantage of trading using opposite Gaxosai and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaxosai 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.

The idea behind Gaxosai and Playtika Holding Corp 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.

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.