Correlation Between Paltalk and AMERICAN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Paltalk and AMERICAN EXPRESS CR, you can compare the effects of market volatilities on Paltalk and AMERICAN 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 Paltalk with a short position of AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paltalk and AMERICAN.
Diversification Opportunities for Paltalk and AMERICAN
Poor diversification
The 3 months correlation between Paltalk and AMERICAN is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Paltalk and AMERICAN EXPRESS CR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS and Paltalk 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 Paltalk are associated (or correlated) with AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS has no effect on the direction of Paltalk i.e., Paltalk and AMERICAN go up and down completely randomly.
Pair Corralation between Paltalk and AMERICAN
Given the investment horizon of 90 days Paltalk is expected to generate 9.26 times more return on investment than AMERICAN. However, Paltalk is 9.26 times more volatile than AMERICAN EXPRESS CR. It trades about 0.04 of its potential returns per unit of risk. AMERICAN EXPRESS CR is currently generating about 0.01 per unit of risk. If you would invest 154.00 in Paltalk on September 5, 2024 and sell it today you would earn a total of 41.00 from holding Paltalk or generate 26.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.76% |
| Values | Daily Returns |
Paltalk vs. AMERICAN EXPRESS CR
Performance |
| Timeline |
| Paltalk |
| AMERICAN EXPRESS |
Paltalk and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paltalk and AMERICAN
The main advantage of trading using opposite Paltalk and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paltalk position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| Paltalk vs. Sphere 3D Corp | Paltalk vs. Society Pass | Paltalk vs. Marin Software | Paltalk vs. EzFill Holdings |
| AMERICAN vs. Kaltura | AMERICAN vs. Dalata Hotel Group | AMERICAN vs. Paltalk | AMERICAN vs. Park Hotels Resorts |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |