Correlation Between Payoneer Global and Oscar Health
Can any of the company-specific risk be diversified away by investing in both Payoneer Global and Oscar Health 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 Oscar Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payoneer Global and Oscar Health, you can compare the effects of market volatilities on Payoneer Global and Oscar Health 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 Oscar Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payoneer Global and Oscar Health.
Diversification Opportunities for Payoneer Global and Oscar Health
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Payoneer and Oscar is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Payoneer Global and Oscar Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oscar Health 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 Oscar Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oscar Health has no effect on the direction of Payoneer Global i.e., Payoneer Global and Oscar Health go up and down completely randomly.
Pair Corralation between Payoneer Global and Oscar Health
Given the investment horizon of 90 days Payoneer Global is expected to generate 0.69 times more return on investment than Oscar Health. However, Payoneer Global is 1.44 times less risky than Oscar Health. It trades about 0.17 of its potential returns per unit of risk. Oscar Health is currently generating about 0.0 per unit of risk. If you would invest 593.00 in Payoneer Global on September 3, 2024 and sell it today you would earn a total of 498.00 from holding Payoneer Global or generate 83.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Payoneer Global vs. Oscar Health
Performance |
| Timeline |
| Payoneer Global |
| Oscar Health |
Payoneer Global and Oscar Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payoneer Global and Oscar Health
The main advantage of trading using opposite Payoneer Global and Oscar Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payoneer Global position performs unexpectedly, Oscar Health 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 Oscar Health will offset losses from the drop in Oscar Health's long position.| Payoneer Global vs. SentinelOne | Payoneer Global vs. CyberArk Software | Payoneer Global vs. MongoDB | Payoneer Global vs. Appian Corp |
| Oscar Health vs. Molina Healthcare | Oscar Health vs. Centene Corp | Oscar Health vs. Elevance Health | Oscar Health vs. Clover Health Investments |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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