Correlation Between PLAYTIKA HOLDING and SEKISUI CHEMICAL

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

Diversification Opportunities for PLAYTIKA HOLDING and SEKISUI CHEMICAL

0.31

Correlation Coefficient

PLAYTIKA HOLDING  SEKISUI CHEMICAL

Weak diversification

The 3 months correlation between PLAYTIKA and SEKISUI is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and SEKISUI CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEKISUI CHEMICAL 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 SEKISUI CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEKISUI CHEMICAL has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and SEKISUI CHEMICAL go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and SEKISUI CHEMICAL

Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the SEKISUI CHEMICAL. In addition to that, PLAYTIKA HOLDING is 2.02 times more volatile than SEKISUI CHEMICAL. It trades about -0.03 of its total potential returns per unit of risk. SEKISUI CHEMICAL is currently generating about -0.04 per unit of volatility. If you would invest  1,480  in SEKISUI CHEMICAL on April 21, 2025 and sell it today you would lose (50.00) from holding SEKISUI CHEMICAL or give up 3.38% of portfolio value over 90 days.

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

PLAYTIKA HOLDING DL 01  vs.  SEKISUI CHEMICAL

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 nearly stable basic indicators, PLAYTIKA HOLDING is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

SEKISUI CHEMICAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days SEKISUI CHEMICAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, SEKISUI CHEMICAL is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with PLAYTIKA HOLDING and SEKISUI CHEMICAL

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

The idea behind PLAYTIKA HOLDING DL 01 and SEKISUI CHEMICAL 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 CEOs Directory module to screen CEOs from public companies around the world.