Correlation Between PLAYTIKA HOLDING and BlueScope Steel

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

By analyzing existing cross correlation between PLAYTIKA HOLDING DL 01 and BlueScope Steel Limited, you can compare the effects of market volatilities on PLAYTIKA HOLDING and BlueScope Steel 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 BlueScope Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and BlueScope Steel.

Diversification Opportunities for PLAYTIKA HOLDING and BlueScope Steel

0.12

Correlation Coefficient

PLAYTIKA HOLDING  BlueScope Steel

Average diversification

The 3 months correlation between PLAYTIKA and BlueScope is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and BlueScope Steel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlueScope Steel 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 DL 01 are associated (or correlated) with BlueScope Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlueScope Steel has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and BlueScope Steel go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and BlueScope Steel

Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the BlueScope Steel. In addition to that, PLAYTIKA HOLDING is 1.3 times more volatile than BlueScope Steel Limited. It trades about -0.1 of its total potential returns per unit of risk. BlueScope Steel Limited is currently generating about 0.11 per unit of volatility. If you would invest  1,250  in BlueScope Steel Limited on April 25, 2025 and sell it today you would earn a total of  140.00  from holding BlueScope Steel Limited or generate 11.2% return on investment over 90 days.

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

PLAYTIKA HOLDING DL 01  vs.  BlueScope Steel Limited

PLAYTIKA HOLDING

Risk-Adjusted Performance

Very Weak

Over the last 90 days PLAYTIKA HOLDING DL 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

BlueScope Steel

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BlueScope Steel Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, BlueScope Steel may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with PLAYTIKA HOLDING and BlueScope Steel

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

The idea behind PLAYTIKA HOLDING DL 01 and BlueScope Steel Limited 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.