Correlation Between Playtika Holding and FormFactor
Can any of the company-specific risk be diversified away by investing in both Playtika Holding and FormFactor 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 FormFactor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtika Holding Corp and FormFactor, you can compare the effects of market volatilities on Playtika Holding and FormFactor 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 FormFactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and FormFactor.
Diversification Opportunities for Playtika Holding and FormFactor
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playtika and FormFactor is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and FormFactor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FormFactor 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 Corp are associated (or correlated) with FormFactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FormFactor has no effect on the direction of Playtika Holding i.e., Playtika Holding and FormFactor go up and down completely randomly.
Pair Corralation between Playtika Holding and FormFactor
Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the FormFactor. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 1.28 times less risky than FormFactor. The stock trades about 0.0 of its potential returns per unit of risk. The FormFactor is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,800 in FormFactor on August 31, 2024 and sell it today you would earn a total of 1,131 from holding FormFactor or generate 40.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. FormFactor
Performance |
| Timeline |
| Playtika Holding Corp |
| FormFactor |
Playtika Holding and FormFactor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and FormFactor
The main advantage of trading using opposite Playtika Holding and FormFactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, FormFactor 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 FormFactor will offset losses from the drop in FormFactor's long position.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| FormFactor vs. Silicon Laboratories | FormFactor vs. Diodes Incorporated | FormFactor vs. MACOM Technology Solutions | FormFactor vs. Amkor Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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