Correlation Between Payoneer Global and Bakkt Holdings
Can any of the company-specific risk be diversified away by investing in both Payoneer Global and Bakkt 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 Payoneer Global and Bakkt Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payoneer Global Warrant and Bakkt Holdings Warrant, you can compare the effects of market volatilities on Payoneer Global and Bakkt 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 Payoneer Global with a short position of Bakkt Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payoneer Global and Bakkt Holdings.
Diversification Opportunities for Payoneer Global and Bakkt Holdings
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Payoneer and Bakkt is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Payoneer Global Warrant and Bakkt Holdings Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bakkt Holdings Warrant 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 Warrant are associated (or correlated) with Bakkt Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bakkt Holdings Warrant has no effect on the direction of Payoneer Global i.e., Payoneer Global and Bakkt Holdings go up and down completely randomly.
Pair Corralation between Payoneer Global and Bakkt Holdings
If you would invest 10.00 in Bakkt Holdings Warrant on August 31, 2024 and sell it today you would earn a total of 34.00 from holding Bakkt Holdings Warrant or generate 340.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Payoneer Global Warrant vs. Bakkt Holdings Warrant
Performance |
| Timeline |
| Payoneer Global Warrant |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bakkt Holdings Warrant |
Payoneer Global and Bakkt Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payoneer Global and Bakkt Holdings
The main advantage of trading using opposite Payoneer Global and Bakkt Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payoneer Global position performs unexpectedly, Bakkt 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 Bakkt Holdings will offset losses from the drop in Bakkt Holdings' long position.| Payoneer Global vs. Payoneer Global | Payoneer Global vs. Katapult Holdings Equity | Payoneer Global vs. Origin Materials Warrant | Payoneer Global vs. AvePoint |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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