Correlation Between Playtech Plc and Persimmon Plc

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

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

Diversification Opportunities for Playtech Plc and Persimmon Plc

-0.79

Correlation Coefficient

Playtech Plc  Persimmon Plc

Pay attention - limited upside

The 3 months correlation between Playtech and Persimmon is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Playtech plc and Persimmon Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Persimmon Plc and Playtech Plc 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 Playtech plc are associated (or correlated) with Persimmon Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Persimmon Plc has no effect on the direction of Playtech Plc i.e., Playtech Plc and Persimmon Plc go up and down completely randomly.

Pair Corralation between Playtech Plc and Persimmon Plc

If you would invest  2,809  in Persimmon Plc on July 3, 2025 and sell it today you would earn a total of  341.00  from holding Persimmon Plc or generate 12.14% return on investment over 90 days.

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

Playtech plc  vs.  Persimmon Plc

Playtech plc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Playtech plc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Playtech Plc reported solid returns over the last few months and may actually be approaching a breakup point.

Persimmon Plc

Risk-Adjusted Performance

Weakest

Over the last 90 days Persimmon Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Playtech Plc and Persimmon Plc

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

The idea behind Playtech plc and Persimmon Plc 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.