Correlation Between Betmakers Technology and Playtika Holding

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

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

Diversification Opportunities for Betmakers Technology and Playtika Holding

0.0

Correlation Coefficient

Betmakers Technology  Playtika Holding

Pay attention - limited upside

The 3 months correlation between Betmakers and Playtika is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Betmakers Technology Group 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 Betmakers Technology 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 Betmakers Technology Group 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 Betmakers Technology i.e., Betmakers Technology and Playtika Holding go up and down completely randomly.

Pair Corralation between Betmakers Technology and Playtika Holding

If you would invest  715.00  in Playtika Holding Corp on September 6, 2024 and sell it today you would earn a total of  146.00  from holding Playtika Holding Corp or generate 20.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Betmakers Technology Group  vs.  Playtika Holding Corp

Betmakers Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Betmakers Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Betmakers Technology is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Playtika Holding Corp

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Playtika Holding Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, Playtika Holding disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Betmakers Technology and Playtika Holding

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

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.