Correlation Between MIRAMAR HOTEL and PLAYTIKA HOLDING

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

By analyzing existing cross correlation between MIRAMAR HOTEL INV and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on MIRAMAR HOTEL and PLAYTIKA HOLDING 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 MIRAMAR HOTEL with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRAMAR HOTEL and PLAYTIKA HOLDING.

Diversification Opportunities for MIRAMAR HOTEL and PLAYTIKA HOLDING

-0.15

Correlation Coefficient

MIRAMAR HOTEL  PLAYTIKA HOLDING

Good diversification

The 3 months correlation between MIRAMAR and PLAYTIKA is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding MIRAMAR HOTEL INV and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING and MIRAMAR HOTEL 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 MIRAMAR HOTEL INV are associated (or correlated) with PLAYTIKA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTIKA HOLDING has no effect on the direction of MIRAMAR HOTEL i.e., MIRAMAR HOTEL and PLAYTIKA HOLDING go up and down completely randomly.

Pair Corralation between MIRAMAR HOTEL and PLAYTIKA HOLDING

Assuming the 90 days trading horizon MIRAMAR HOTEL INV is expected to generate 0.57 times more return on investment than PLAYTIKA HOLDING. However, MIRAMAR HOTEL INV is 1.75 times less risky than PLAYTIKA HOLDING. It trades about 0.14 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about -0.04 per unit of risk. If you would invest  97.00  in MIRAMAR HOTEL INV on April 20, 2025 and sell it today you would earn a total of  12.00  from holding MIRAMAR HOTEL INV or generate 12.37% return on investment over 90 days.

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

MIRAMAR HOTEL INV  vs.  PLAYTIKA HOLDING DL 01

MIRAMAR HOTEL INV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MIRAMAR HOTEL INV are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain essential indicators, MIRAMAR HOTEL may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with MIRAMAR HOTEL and PLAYTIKA HOLDING

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

The idea behind MIRAMAR HOTEL INV and PLAYTIKA HOLDING DL 01 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 Global Correlations module to find global opportunities by holding instruments from different markets.