Correlation Between BurgerFi International and Paysafe
Can any of the company-specific risk be diversified away by investing in both BurgerFi International and Paysafe 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 BurgerFi International and Paysafe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BurgerFi International LLC and Paysafe Ltd Wt, you can compare the effects of market volatilities on BurgerFi International and Paysafe 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 BurgerFi International with a short position of Paysafe. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurgerFi International and Paysafe.
Diversification Opportunities for BurgerFi International and Paysafe
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between BurgerFi and Paysafe is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding BurgerFi International LLC and Paysafe Ltd Wt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysafe Ltd Wt and BurgerFi International 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 BurgerFi International LLC are associated (or correlated) with Paysafe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysafe Ltd Wt has no effect on the direction of BurgerFi International i.e., BurgerFi International and Paysafe go up and down completely randomly.
Pair Corralation between BurgerFi International and Paysafe
If you would invest 2.55 in Paysafe Ltd Wt on August 27, 2024 and sell it today you would earn a total of 0.45 from holding Paysafe Ltd Wt or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
BurgerFi International LLC vs. Paysafe Ltd Wt
Performance |
| Timeline |
| BurgerFi International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Paysafe Ltd Wt |
BurgerFi International and Paysafe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BurgerFi International and Paysafe
The main advantage of trading using opposite BurgerFi International and Paysafe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurgerFi International position performs unexpectedly, Paysafe 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 Paysafe will offset losses from the drop in Paysafe's long position.| BurgerFi International vs. Canoo Holdings | BurgerFi International vs. Landsea Homes | BurgerFi International vs. Nuvve Holding Corp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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