Correlation Between Nayax and Archer Aviation
Can any of the company-specific risk be diversified away by investing in both Nayax and Archer Aviation 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 Nayax and Archer Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nayax and Archer Aviation, you can compare the effects of market volatilities on Nayax and Archer Aviation 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 Nayax with a short position of Archer Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nayax and Archer Aviation.
Diversification Opportunities for Nayax and Archer Aviation
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nayax and Archer is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Nayax and Archer Aviation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Archer Aviation and Nayax 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 Nayax are associated (or correlated) with Archer Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Archer Aviation has no effect on the direction of Nayax i.e., Nayax and Archer Aviation go up and down completely randomly.
Pair Corralation between Nayax and Archer Aviation
Given the investment horizon of 90 days Nayax is expected to generate 0.8 times more return on investment than Archer Aviation. However, Nayax is 1.25 times less risky than Archer Aviation. It trades about 0.07 of its potential returns per unit of risk. Archer Aviation is currently generating about 0.02 per unit of risk. If you would invest 1,905 in Nayax on August 25, 2024 and sell it today you would earn a total of 964.00 from holding Nayax or generate 50.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.38% |
| Values | Daily Returns |
Nayax vs. Archer Aviation
Performance |
| Timeline |
| Nayax |
| Archer Aviation |
Nayax and Archer Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nayax and Archer Aviation
The main advantage of trading using opposite Nayax and Archer Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nayax position performs unexpectedly, Archer Aviation 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 Archer Aviation will offset losses from the drop in Archer Aviation's long position.The idea behind Nayax and Archer Aviation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Archer Aviation vs. Vertical Aerospace | Archer Aviation vs. Ehang Holdings | Archer Aviation vs. Rocket Lab USA | Archer Aviation vs. Lilium NV |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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