Correlation Between Teradata Corp and Playtika Holding

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

Diversification Opportunities for Teradata Corp and Playtika Holding

0.81
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Teradata and Playtika is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Teradata Corp 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 Teradata Corp 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 Teradata Corp 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 Teradata Corp i.e., Teradata Corp and Playtika Holding go up and down completely randomly.

Pair Corralation between Teradata Corp and Playtika Holding

Considering the 90-day investment horizon Teradata Corp is expected to generate 1.02 times more return on investment than Playtika Holding. However, Teradata Corp is 1.02 times more volatile than Playtika Holding Corp. It trades about 0.02 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about -0.03 per unit of risk. If you would invest  3,063  in Teradata Corp on September 11, 2025 and sell it today you would earn a total of  103.00  from holding Teradata Corp or generate 3.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Teradata Corp  vs.  Playtika Holding Corp

 Performance 
       Timeline  
Teradata Corp 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Teradata Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Teradata Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.
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 9 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Playtika Holding disclosed solid returns over the last few months and may actually be approaching a breakup point.

Teradata Corp and Playtika Holding Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Teradata Corp and Playtika Holding

The main advantage of trading using opposite Teradata Corp and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teradata Corp 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 Teradata Corp 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.
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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