Correlation Between Nordic Semiconductor and PLAYTIKA HOLDING

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

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

Diversification Opportunities for Nordic Semiconductor and PLAYTIKA HOLDING

-0.72

Correlation Coefficient

Nordic Semiconductor  PLAYTIKA HOLDING

Pay attention - limited upside

The 3 months correlation between Nordic and PLAYTIKA is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA 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 Nordic Semiconductor 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 Nordic Semiconductor ASA 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 Nordic Semiconductor i.e., Nordic Semiconductor and PLAYTIKA HOLDING go up and down completely randomly.

Pair Corralation between Nordic Semiconductor and PLAYTIKA HOLDING

Assuming the 90 days horizon Nordic Semiconductor ASA is expected to generate 0.98 times more return on investment than PLAYTIKA HOLDING. However, Nordic Semiconductor ASA is 1.02 times less risky than PLAYTIKA HOLDING. It trades about 0.15 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about -0.01 per unit of risk. If you would invest  1,077  in Nordic Semiconductor ASA on April 24, 2025 and sell it today you would earn a total of  119.00  from holding Nordic Semiconductor ASA or generate 11.05% return on investment over 90 days.

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

Nordic Semiconductor ASA  vs.  PLAYTIKA HOLDING DL 01

Nordic Semiconductor ASA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nordic Semiconductor ASA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Nordic Semiconductor 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 Nordic Semiconductor and PLAYTIKA HOLDING

The main advantage of trading using opposite Nordic Semiconductor and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor 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 Nordic Semiconductor ASA 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.