Correlation Between Global Payments and PFSweb
Can any of the company-specific risk be diversified away by investing in both Global Payments and PFSweb 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 PFSweb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Payments and PFSweb Inc, you can compare the effects of market volatilities on Global Payments and PFSweb 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 PFSweb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Payments and PFSweb.
Diversification Opportunities for Global Payments and PFSweb
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and PFSweb is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Global Payments and PFSweb Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFSweb Inc 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 PFSweb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFSweb Inc has no effect on the direction of Global Payments i.e., Global Payments and PFSweb go up and down completely randomly.
Pair Corralation between Global Payments and PFSweb
Considering the 90-day investment horizon Global Payments is expected to generate 0.55 times more return on investment than PFSweb. However, Global Payments is 1.82 times less risky than PFSweb. It trades about 0.01 of its potential returns per unit of risk. PFSweb Inc is currently generating about -0.07 per unit of risk. If you would invest 10,833 in Global Payments on October 20, 2024 and sell it today you would earn a total of 9.00 from holding Global Payments or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 24.65% |
| Values | Daily Returns |
Global Payments vs. PFSweb Inc
Performance |
| Timeline |
| Global Payments |
| PFSweb Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Payments and PFSweb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Payments and PFSweb
The main advantage of trading using opposite Global Payments and PFSweb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Payments position performs unexpectedly, PFSweb 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 PFSweb will offset losses from the drop in PFSweb'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 |
| PFSweb vs. Network 1 Technologies | PFSweb vs. Rentokil Initial PLC | PFSweb vs. Cass Information Systems | PFSweb vs. Maximus |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |