Correlation Between Altigen Communications and Playtika Holding
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 Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altigen Communications vs. Playtika Holding Corp
Performance |
| Timeline |
| Altigen Communications |
| Playtika Holding Corp |
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.| Altigen Communications vs. Federal National Mortgage | Altigen Communications vs. Grupo Aval | Altigen Communications vs. KB Financial Group | Altigen Communications vs. Shinhan Financial Group |
| Playtika Holding vs. Sun Country Airlines | Playtika Holding vs. Schweiter Technologies AG | Playtika Holding vs. Singapore Airlines | Playtika Holding vs. Teradata Corp |
Check out your portfolio center.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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