Correlation Between PLAYTIKA HOLDING and Monument Mining

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

Diversification Opportunities for PLAYTIKA HOLDING and Monument Mining

0.44

Correlation Coefficient

PLAYTIKA HOLDING  Monument Mining

Very weak diversification

The 3 months correlation between PLAYTIKA and Monument is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and Monument Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monument Mining 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 Monument Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monument Mining has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and Monument Mining go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and Monument Mining

Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the Monument Mining. But the stock apears to be less risky and, when comparing its historical volatility, PLAYTIKA HOLDING DL 01 is 1.65 times less risky than Monument Mining. The stock trades about -0.05 of its potential returns per unit of risk. The Monument Mining Limited is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  26.00  in Monument Mining Limited on April 24, 2025 and sell it today you would lose (2.00) from holding Monument Mining Limited or give up 7.69% of portfolio value over 90 days.

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

PLAYTIKA HOLDING DL 01  vs.  Monument Mining 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 latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Monument Mining

Risk-Adjusted Performance

Very Weak

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

Pair Trading with PLAYTIKA HOLDING and Monument Mining

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

The idea behind PLAYTIKA HOLDING DL 01 and Monument Mining 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 Stocks Directory module to find actively traded stocks across global markets.