Correlation Between SOFI TECHNOLOGIES and PLAYTIKA HOLDING

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

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

Diversification Opportunities for SOFI TECHNOLOGIES and PLAYTIKA HOLDING

-0.37

Correlation Coefficient

SOFI TECHNOLOGIES  PLAYTIKA HOLDING

Very good diversification

The 3 months correlation between SOFI and PLAYTIKA is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES i.e., SOFI TECHNOLOGIES and PLAYTIKA HOLDING go up and down completely randomly.

Pair Corralation between SOFI TECHNOLOGIES and PLAYTIKA HOLDING

Assuming the 90 days horizon SOFI TECHNOLOGIES is expected to generate 1.34 times more return on investment than PLAYTIKA HOLDING. However, SOFI TECHNOLOGIES is 1.34 times more volatile than PLAYTIKA HOLDING DL 01. It trades about 0.28 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about -0.05 per unit of risk. If you would invest  1,085  in SOFI TECHNOLOGIES on April 24, 2025 and sell it today you would earn a total of  761.00  from holding SOFI TECHNOLOGIES or generate 70.14% return on investment over 90 days.

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

SOFI TECHNOLOGIES  vs.  PLAYTIKA HOLDING DL 01

SOFI TECHNOLOGIES

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SOFI TECHNOLOGIES are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, SOFI TECHNOLOGIES reported solid returns over the last few months and may actually be approaching a breakup point.

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 latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with SOFI TECHNOLOGIES and PLAYTIKA HOLDING

The main advantage of trading using opposite SOFI TECHNOLOGIES and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.