Correlation Between Playtika Holding and GDEV

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

Diversification Opportunities for Playtika Holding and GDEV

-0.53

Correlation Coefficient

Playtika Holding  GDEV

Excellent diversification

The 3 months correlation between Playtika and GDEV is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and GDEV Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDEV Inc 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 GDEV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDEV Inc has no effect on the direction of Playtika Holding i.e., Playtika Holding and GDEV go up and down completely randomly.

Pair Corralation between Playtika Holding and GDEV

Given the investment horizon of 90 days Playtika Holding Corp is expected to generate 0.4 times more return on investment than GDEV. However, Playtika Holding Corp is 2.48 times less risky than GDEV. It trades about 0.0 of its potential returns per unit of risk. GDEV Inc is currently generating about -0.01 per unit of risk. If you would invest  804.00  in Playtika Holding Corp on September 19, 2024 and sell it today you would lose (92.00) from holding Playtika Holding Corp or give up 11.44% of portfolio value over 90 days.

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

Playtika Holding Corp  vs.  GDEV Inc

Playtika Holding Corp

Risk-Adjusted Performance

0 of 100

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 latest uncertain performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

GDEV Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GDEV Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Playtika Holding and GDEV

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

The idea behind Playtika Holding Corp and GDEV Inc 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.