Correlation Between Oneconnect Financial and Repay Holdings
Can any of the company-specific risk be diversified away by investing in both Oneconnect Financial and Repay Holdings 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 Oneconnect Financial and Repay Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oneconnect Financial Technology and Repay Holdings Corp, you can compare the effects of market volatilities on Oneconnect Financial and Repay Holdings 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 Oneconnect Financial with a short position of Repay Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oneconnect Financial and Repay Holdings.
Diversification Opportunities for Oneconnect Financial and Repay Holdings
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oneconnect and Repay is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Oneconnect Financial Technolog and Repay Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repay Holdings Corp and Oneconnect Financial 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 Oneconnect Financial Technology are associated (or correlated) with Repay Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repay Holdings Corp has no effect on the direction of Oneconnect Financial i.e., Oneconnect Financial and Repay Holdings go up and down completely randomly.
Pair Corralation between Oneconnect Financial and Repay Holdings
Given the investment horizon of 90 days Oneconnect Financial is expected to generate 7.55 times less return on investment than Repay Holdings. In addition to that, Oneconnect Financial is 1.89 times more volatile than Repay Holdings Corp. It trades about 0.01 of its total potential returns per unit of risk. Repay Holdings Corp is currently generating about 0.1 per unit of volatility. If you would invest 765.00 in Repay Holdings Corp on August 30, 2024 and sell it today you would earn a total of 43.00 from holding Repay Holdings Corp or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Oneconnect Financial Technolog vs. Repay Holdings Corp
Performance |
| Timeline |
| Oneconnect Financial |
| Repay Holdings Corp |
Oneconnect Financial and Repay Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oneconnect Financial and Repay Holdings
The main advantage of trading using opposite Oneconnect Financial and Repay Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oneconnect Financial position performs unexpectedly, Repay Holdings 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 Repay Holdings will offset losses from the drop in Repay Holdings' long position.| Oneconnect Financial vs. Trust Stamp | Oneconnect Financial vs. Amesite Operating Co | Oneconnect Financial vs. My Size | Oneconnect Financial vs. Kingsoft Cloud Holdings |
| Repay Holdings vs. Global Blue Group | Repay Holdings vs. Optiva Inc | Repay Holdings vs. Sangoma Technologies Corp | Repay Holdings vs. Evertec |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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