Correlation Between Global Payments and Opus Magnum
Can any of the company-specific risk be diversified away by investing in both Global Payments and Opus Magnum 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 Global Payments and Opus Magnum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Payments and Opus Magnum Ameris, you can compare the effects of market volatilities on Global Payments and Opus Magnum 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 Global Payments with a short position of Opus Magnum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Payments and Opus Magnum.
Diversification Opportunities for Global Payments and Opus Magnum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Opus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Payments and Opus Magnum Ameris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opus Magnum Ameris and Global Payments 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 Global Payments are associated (or correlated) with Opus Magnum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opus Magnum Ameris has no effect on the direction of Global Payments i.e., Global Payments and Opus Magnum go up and down completely randomly.
Pair Corralation between Global Payments and Opus Magnum
If you would invest 10,515 in Global Payments on September 3, 2024 and sell it today you would earn a total of 1,381 from holding Global Payments or generate 13.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Global Payments vs. Opus Magnum Ameris
Performance |
| Timeline |
| Global Payments |
| Opus Magnum Ameris |
Global Payments and Opus Magnum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Payments and Opus Magnum
The main advantage of trading using opposite Global Payments and Opus Magnum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Payments position performs unexpectedly, Opus Magnum 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 Opus Magnum will offset losses from the drop in Opus Magnum's long position.| Global Payments vs. Copart Inc | Global Payments vs. ABM Industries Incorporated | Global Payments vs. Thomson Reuters Corp | Global Payments vs. Aramark Holdings |
| Opus Magnum vs. Cintas | Opus Magnum vs. Thomson Reuters Corp | Opus Magnum vs. Global Payments | Opus Magnum vs. RB Global |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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