Correlation Between Playtika Holding and Intelsat

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

Diversification Opportunities for Playtika Holding and Intelsat

0.0

Correlation Coefficient

Playtika Holding  Intelsat

Pay attention - limited upside

The 3 months correlation between Playtika and Intelsat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Intelsat SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelsat SA 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 Intelsat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelsat SA has no effect on the direction of Playtika Holding i.e., Playtika Holding and Intelsat go up and down completely randomly.

Pair Corralation between Playtika Holding and Intelsat

If you would invest  685.00  in Playtika Holding Corp on January 27, 2024 and sell it today you would earn a total of  31.00  from holding Playtika Holding Corp or generate 4.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Playtika Holding Corp  vs.  Intelsat SA

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 quite persistent basic indicators, Playtika Holding is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Intelsat SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intelsat SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Intelsat is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Playtika Holding and Intelsat

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

The idea behind Playtika Holding Corp and Intelsat SA 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.