Correlation Between Check Point and Paysign
Can any of the company-specific risk be diversified away by investing in both Check Point and Paysign 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 Check Point and Paysign into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Check Point Software and Paysign, you can compare the effects of market volatilities on Check Point and Paysign 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 Check Point with a short position of Paysign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Check Point and Paysign.
Diversification Opportunities for Check Point and Paysign
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Check and Paysign is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Check Point Software and Paysign in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysign and Check Point 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 Check Point Software are associated (or correlated) with Paysign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysign has no effect on the direction of Check Point i.e., Check Point and Paysign go up and down completely randomly.
Pair Corralation between Check Point and Paysign
Given the investment horizon of 90 days Check Point is expected to generate 1.6 times less return on investment than Paysign. But when comparing it to its historical volatility, Check Point Software is 2.49 times less risky than Paysign. It trades about 0.08 of its potential returns per unit of risk. Paysign is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 205.00 in Paysign on September 12, 2024 and sell it today you would earn a total of 114.00 from holding Paysign or generate 55.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Check Point Software vs. Paysign
Performance |
| Timeline |
| Check Point Software |
| Paysign |
Check Point and Paysign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Check Point and Paysign
The main advantage of trading using opposite Check Point and Paysign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Check Point position performs unexpectedly, Paysign 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 Paysign will offset losses from the drop in Paysign's long position.| Check Point vs. Rapid7 Inc | Check Point vs. Tenable Holdings | Check Point vs. Okta Inc | Check Point vs. WixCom |
| Paysign vs. GigaCloud Technology Class | Paysign vs. Alarum Technologies | Paysign vs. Stem Inc | Paysign vs. Pagaya Technologies |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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