Correlation Between Altigen Communications and Playtika Holding

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Can any of the company-specific risk be diversified away by investing in both Altigen Communications 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 Altigen Communications and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altigen Communications and Playtika Holding Corp, you can compare the effects of market volatilities on Altigen Communications 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 Altigen Communications with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altigen Communications and Playtika Holding.

Diversification Opportunities for Altigen Communications and Playtika Holding

-0.65
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Altigen and Playtika is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Altigen Communications and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp and Altigen Communications 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 Altigen Communications 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 Corp has no effect on the direction of Altigen Communications i.e., Altigen Communications and Playtika Holding go up and down completely randomly.

Pair Corralation between Altigen Communications and Playtika Holding

Given the investment horizon of 90 days Altigen Communications is expected to under-perform the Playtika Holding. But the otc stock apears to be less risky and, when comparing its historical volatility, Altigen Communications is 1.11 times less risky than Playtika Holding. The otc stock trades about -0.05 of its potential returns per unit of risk. The Playtika Holding Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  374.00  in Playtika Holding Corp on September 6, 2025 and sell it today you would earn a total of  46.00  from holding Playtika Holding Corp or generate 12.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Altigen Communications  vs.  Playtika Holding Corp

 Performance 
       Timeline  
Altigen Communications 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Altigen Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.
Playtika Holding Corp 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Playtika Holding Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Playtika Holding disclosed solid returns over the last few months and may actually be approaching a breakup point.

Altigen Communications and Playtika Holding Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Altigen Communications and Playtika Holding

The main advantage of trading using opposite Altigen Communications and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altigen Communications 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 Altigen Communications and Playtika Holding Corp 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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