Correlation Between Alarum Technologies and Repay Holdings
Can any of the company-specific risk be diversified away by investing in both Alarum Technologies and Repay Holdings 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 Alarum Technologies and Repay Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alarum Technologies and Repay Holdings Corp, you can compare the effects of market volatilities on Alarum Technologies and Repay Holdings 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 Alarum Technologies with a short position of Repay Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alarum Technologies and Repay Holdings.
Diversification Opportunities for Alarum Technologies and Repay Holdings
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alarum and Repay is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Alarum Technologies and Repay Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repay Holdings Corp and Alarum 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 Alarum Technologies are associated (or correlated) with Repay Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repay Holdings Corp has no effect on the direction of Alarum Technologies i.e., Alarum Technologies and Repay Holdings go up and down completely randomly.
Pair Corralation between Alarum Technologies and Repay Holdings
Given the investment horizon of 90 days Alarum Technologies is expected to generate 2.29 times more return on investment than Repay Holdings. However, Alarum Technologies is 2.29 times more volatile than Repay Holdings Corp. It trades about 0.05 of its potential returns per unit of risk. Repay Holdings Corp is currently generating about 0.06 per unit of risk. If you would invest 1,234 in Alarum Technologies on September 2, 2024 and sell it today you would earn a total of 30.00 from holding Alarum Technologies or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alarum Technologies vs. Repay Holdings Corp
Performance |
| Timeline |
| Alarum Technologies |
| Repay Holdings Corp |
Alarum Technologies and Repay Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alarum Technologies and Repay Holdings
The main advantage of trading using opposite Alarum Technologies and Repay Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alarum Technologies position performs unexpectedly, Repay Holdings 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 Repay Holdings will offset losses from the drop in Repay Holdings' long position.| Alarum Technologies vs. Palo Alto Networks | Alarum Technologies vs. GigaCloud Technology Class | Alarum Technologies vs. Pagaya Technologies | Alarum Technologies vs. Telos Corp |
| Repay Holdings vs. Global Blue Group | Repay Holdings vs. Optiva Inc | Repay Holdings vs. Sangoma Technologies Corp | Repay Holdings vs. Evertec |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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