Correlation Between N2OFF and Playtika Holding

Can any of the company-specific risk be diversified away by investing in both N2OFF 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 N2OFF and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between N2OFF Inc and Playtika Holding Corp, you can compare the effects of market volatilities on N2OFF 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 N2OFF with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of N2OFF and Playtika Holding.

Diversification Opportunities for N2OFF and Playtika Holding

0.61

Correlation Coefficient

N2OFF  Playtika Holding

Poor diversification

The 3 months correlation between N2OFF and Playtika is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding N2OFF Inc 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 N2OFF 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 N2OFF Inc 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 N2OFF i.e., N2OFF and Playtika Holding go up and down completely randomly.

Pair Corralation between N2OFF and Playtika Holding

Given the investment horizon of 90 days N2OFF Inc is expected to generate 11.1 times more return on investment than Playtika Holding. However, N2OFF is 11.1 times more volatile than Playtika Holding Corp. It trades about 0.09 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about -0.09 per unit of risk. If you would invest  28.00  in N2OFF Inc on December 29, 2024 and sell it today you would lose (3.00) from holding N2OFF Inc or give up 10.71% of portfolio value over 90 days.

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

N2OFF Inc  vs.  Playtika Holding Corp

N2OFF Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in N2OFF Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, N2OFF displayed solid returns over the last few months and may actually be approaching a breakup point.

Playtika Holding Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Playtika Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with N2OFF and Playtika Holding

The main advantage of trading using opposite N2OFF and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N2OFF 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 N2OFF Inc 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.

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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 Stocks Directory module to find actively traded stocks across global markets.