Correlation Between PAR Technology and Walkme
Can any of the company-specific risk be diversified away by investing in both PAR Technology and Walkme 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 PAR Technology and Walkme into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PAR Technology and Walkme, you can compare the effects of market volatilities on PAR Technology and Walkme 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 PAR Technology with a short position of Walkme. Check out your portfolio center. Please also check ongoing floating volatility patterns of PAR Technology and Walkme.
Diversification Opportunities for PAR Technology and Walkme
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PAR and Walkme is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PAR Technology and Walkme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walkme and PAR Technology 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 PAR Technology are associated (or correlated) with Walkme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walkme has no effect on the direction of PAR Technology i.e., PAR Technology and Walkme go up and down completely randomly.
Pair Corralation between PAR Technology and Walkme
Considering the 90-day investment horizon PAR Technology is expected to generate 0.71 times more return on investment than Walkme. However, PAR Technology is 1.42 times less risky than Walkme. It trades about 0.11 of its potential returns per unit of risk. Walkme is currently generating about 0.07 per unit of risk. If you would invest 4,554 in PAR Technology on August 28, 2024 and sell it today you would earn a total of 3,279 from holding PAR Technology or generate 72.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 75.12% |
| Values | Daily Returns |
PAR Technology vs. Walkme
Performance |
| Timeline |
| PAR Technology |
| Walkme |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
PAR Technology and Walkme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PAR Technology and Walkme
The main advantage of trading using opposite PAR Technology and Walkme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PAR Technology position performs unexpectedly, Walkme 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 Walkme will offset losses from the drop in Walkme's long position.| PAR Technology vs. Plexus Corp | PAR Technology vs. Jabil Circuit | PAR Technology vs. Sanmina | PAR Technology vs. Methode Electronics |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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