Correlation Between Canoo and Paysafe
Can any of the company-specific risk be diversified away by investing in both Canoo 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 Canoo and Paysafe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canoo Inc and Paysafe Ltd Wt, you can compare the effects of market volatilities on Canoo 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 Canoo with a short position of Paysafe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canoo and Paysafe.
Diversification Opportunities for Canoo and Paysafe
Very good diversification
The 3 months correlation between Canoo and Paysafe is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Canoo Inc 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 Canoo 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 Canoo Inc 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 Canoo i.e., Canoo and Paysafe go up and down completely randomly.
Pair Corralation between Canoo and Paysafe
Given the investment horizon of 90 days Canoo Inc is expected to under-perform the Paysafe. But the stock apears to be less risky and, when comparing its historical volatility, Canoo Inc is 1.18 times less risky than Paysafe. The stock trades about -0.16 of its potential returns per unit of risk. The Paysafe Ltd Wt is currently generating about 0.12 of returns per unit of risk over similar time horizon. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canoo Inc vs. Paysafe Ltd Wt
Performance |
| Timeline |
| Canoo Inc |
| Paysafe Ltd Wt |
Canoo and Paysafe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canoo and Paysafe
The main advantage of trading using opposite Canoo and Paysafe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canoo 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.| Canoo vs. Lucid Group | Canoo vs. Rivian Automotive | Canoo vs. Polestar Automotive Holding | Canoo vs. Mullen Automotive |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |