Correlation Between Nisun International and Global Payments
Can any of the company-specific risk be diversified away by investing in both Nisun International and Global Payments 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 Nisun International and Global Payments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nisun International Enterprise and Global Payments, you can compare the effects of market volatilities on Nisun International and Global Payments 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 Nisun International with a short position of Global Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nisun International and Global Payments.
Diversification Opportunities for Nisun International and Global Payments
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nisun and Global is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nisun International Enterprise and Global Payments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payments and Nisun 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 Nisun International Enterprise are associated (or correlated) with Global Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payments has no effect on the direction of Nisun International i.e., Nisun International and Global Payments go up and down completely randomly.
Pair Corralation between Nisun International and Global Payments
Given the investment horizon of 90 days Nisun International is expected to generate 1.1 times less return on investment than Global Payments. In addition to that, Nisun International is 3.65 times more volatile than Global Payments. It trades about 0.08 of its total potential returns per unit of risk. Global Payments is currently generating about 0.32 per unit of volatility. If you would invest 10,444 in Global Payments on September 2, 2024 and sell it today you would earn a total of 1,452 from holding Global Payments or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nisun International Enterprise vs. Global Payments
Performance |
| Timeline |
| Nisun International |
| Global Payments |
Nisun International and Global Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nisun International and Global Payments
The main advantage of trading using opposite Nisun International and Global Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nisun International position performs unexpectedly, Global Payments 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 Global Payments will offset losses from the drop in Global Payments' long position.| Nisun International vs. Sentage Holdings | Nisun International vs. Yirendai | Nisun International vs. Lexinfintech Holdings | Nisun International vs. Lufax Holding |
| Global Payments vs. Copart Inc | Global Payments vs. ABM Industries Incorporated | Global Payments vs. Thomson Reuters Corp | Global Payments vs. Aramark Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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