Correlation Between PLAYTIKA HOLDING and SOFI TECHNOLOGIES

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

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

Diversification Opportunities for PLAYTIKA HOLDING and SOFI TECHNOLOGIES

-0.36

Correlation Coefficient

PLAYTIKA HOLDING  SOFI TECHNOLOGIES

Very good diversification

The 3 months correlation between PLAYTIKA and SOFI is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and SOFI TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOFI TECHNOLOGIES and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING DL 01 are associated (or correlated) with SOFI TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOFI TECHNOLOGIES has no effect on the direction of PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and SOFI TECHNOLOGIES go up and down completely randomly.

Pair Corralation between PLAYTIKA HOLDING and SOFI TECHNOLOGIES

Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the SOFI TECHNOLOGIES. But the stock apears to be less risky and, when comparing its historical volatility, PLAYTIKA HOLDING DL 01 is 1.4 times less risky than SOFI TECHNOLOGIES. The stock trades about -0.03 of its potential returns per unit of risk. The SOFI TECHNOLOGIES is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  979.00  in SOFI TECHNOLOGIES on April 22, 2025 and sell it today you would earn a total of  879.00  from holding SOFI TECHNOLOGIES or generate 89.79% return on investment over 90 days.

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

PLAYTIKA HOLDING DL 01  vs.  SOFI TECHNOLOGIES

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.

SOFI TECHNOLOGIES

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SOFI TECHNOLOGIES are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SOFI TECHNOLOGIES reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PLAYTIKA HOLDING and SOFI TECHNOLOGIES

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

The idea behind PLAYTIKA HOLDING DL 01 and SOFI TECHNOLOGIES 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..