Correlation Between Alkami Technology and Wirecard
Can any of the company-specific risk be diversified away by investing in both Alkami Technology and Wirecard 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 Alkami Technology and Wirecard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkami Technology and Wirecard AG, you can compare the effects of market volatilities on Alkami Technology and Wirecard 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 Alkami Technology with a short position of Wirecard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkami Technology and Wirecard.
Diversification Opportunities for Alkami Technology and Wirecard
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Alkami and Wirecard is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Alkami Technology and Wirecard AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wirecard AG and Alkami Technology 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 Alkami Technology are associated (or correlated) with Wirecard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wirecard AG has no effect on the direction of Alkami Technology i.e., Alkami Technology and Wirecard go up and down completely randomly.
Pair Corralation between Alkami Technology and Wirecard
Given the investment horizon of 90 days Alkami Technology is expected to generate 74.21 times less return on investment than Wirecard. But when comparing it to its historical volatility, Alkami Technology is 49.07 times less risky than Wirecard. It trades about 0.08 of its potential returns per unit of risk. Wirecard AG is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Wirecard AG on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Wirecard AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Alkami Technology vs. Wirecard AG
Performance |
| Timeline |
| Alkami Technology |
| Wirecard AG |
Alkami Technology and Wirecard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkami Technology and Wirecard
The main advantage of trading using opposite Alkami Technology and Wirecard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkami Technology position performs unexpectedly, Wirecard 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 Wirecard will offset losses from the drop in Wirecard's long position.| Alkami Technology vs. Agilysys | Alkami Technology vs. ADEIA P | Alkami Technology vs. Paycor HCM | Alkami Technology vs. Paylocity Holdng |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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