Correlation Between Payoneer Global and Lifevantage
Can any of the company-specific risk be diversified away by investing in both Payoneer Global and Lifevantage 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 Payoneer Global and Lifevantage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payoneer Global and Lifevantage, you can compare the effects of market volatilities on Payoneer Global and Lifevantage 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 Payoneer Global with a short position of Lifevantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payoneer Global and Lifevantage.
Diversification Opportunities for Payoneer Global and Lifevantage
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Payoneer and Lifevantage is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Payoneer Global and Lifevantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifevantage and Payoneer Global 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 Payoneer Global are associated (or correlated) with Lifevantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifevantage has no effect on the direction of Payoneer Global i.e., Payoneer Global and Lifevantage go up and down completely randomly.
Pair Corralation between Payoneer Global and Lifevantage
Given the investment horizon of 90 days Payoneer Global is expected to generate 1.1 times less return on investment than Lifevantage. But when comparing it to its historical volatility, Payoneer Global is 1.4 times less risky than Lifevantage. It trades about 0.17 of its potential returns per unit of risk. Lifevantage is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 787.00 in Lifevantage on September 1, 2024 and sell it today you would earn a total of 674.00 from holding Lifevantage or generate 85.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Payoneer Global vs. Lifevantage
Performance |
| Timeline |
| Payoneer Global |
| Lifevantage |
Payoneer Global and Lifevantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payoneer Global and Lifevantage
The main advantage of trading using opposite Payoneer Global and Lifevantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payoneer Global position performs unexpectedly, Lifevantage 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 Lifevantage will offset losses from the drop in Lifevantage's long position.| Payoneer Global vs. SentinelOne | Payoneer Global vs. CyberArk Software | Payoneer Global vs. MongoDB | Payoneer Global vs. Appian Corp |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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