Correlation Between Playtika Holding and Roman DBDR

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

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

Diversification Opportunities for Playtika Holding and Roman DBDR

-0.55

Correlation Coefficient

Playtika Holding  Roman DBDR

Excellent diversification

The 3 months correlation between Playtika and Roman is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Roman DBDR Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roman DBDR Acquisition 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 Corp are associated (or correlated) with Roman DBDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roman DBDR Acquisition has no effect on the direction of Playtika Holding i.e., Playtika Holding and Roman DBDR go up and down completely randomly.

Pair Corralation between Playtika Holding and Roman DBDR

Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Roman DBDR. In addition to that, Playtika Holding is 15.69 times more volatile than Roman DBDR Acquisition. It trades about -0.11 of its total potential returns per unit of risk. Roman DBDR Acquisition is currently generating about 0.1 per unit of volatility. If you would invest  1,018  in Roman DBDR Acquisition on May 6, 2025 and sell it today you would earn a total of  10.00  from holding Roman DBDR Acquisition or generate 0.98% return on investment over 90 days.

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

Playtika Holding Corp  vs.  Roman DBDR Acquisition

Playtika Holding Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Playtika Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Roman DBDR Acquisition

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Roman DBDR Acquisition are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Roman DBDR is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Playtika Holding and Roman DBDR

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

The idea behind Playtika Holding Corp and Roman DBDR Acquisition 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.