Correlation Between Playtika Holding and ZW Data

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

Diversification Opportunities for Playtika Holding and ZW Data

0.56
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Playtika and CNET is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action 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 ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of Playtika Holding i.e., Playtika Holding and ZW Data go up and down completely randomly.

Pair Corralation between Playtika Holding and ZW Data

Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the ZW Data. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 3.9 times less risky than ZW Data. The stock trades about -0.02 of its potential returns per unit of risk. The ZW Data Action is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  152.00  in ZW Data Action on April 14, 2025 and sell it today you would earn a total of  19.00  from holding ZW Data Action or generate 12.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Playtika Holding Corp  vs.  ZW Data Action

 Performance 
       Timeline  
Playtika Holding Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
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 recent stock price mess, may contribute to short-term losses for the institutional investors.
ZW Data Action 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ZW Data Action are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, ZW Data unveiled solid returns over the last few months and may actually be approaching a breakup point.

Playtika Holding and ZW Data Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Playtika Holding and ZW Data

The main advantage of trading using opposite Playtika Holding and ZW Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, ZW Data 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 ZW Data will offset losses from the drop in ZW Data's long position.
The idea behind Playtika Holding Corp and ZW Data Action 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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