Correlation Between Payment Financial and Abra Information
Can any of the company-specific risk be diversified away by investing in both Payment Financial and Abra Information 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 Payment Financial and Abra Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payment Financial Technologies and Abra Information Technologies, you can compare the effects of market volatilities on Payment Financial and Abra Information 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 Payment Financial with a short position of Abra Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payment Financial and Abra Information.
Diversification Opportunities for Payment Financial and Abra Information
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Payment and Abra is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Payment Financial Technologies and Abra Information Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abra Information Tec and Payment Financial 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 Payment Financial Technologies are associated (or correlated) with Abra Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abra Information Tec has no effect on the direction of Payment Financial i.e., Payment Financial and Abra Information go up and down completely randomly.
Pair Corralation between Payment Financial and Abra Information
Assuming the 90 days trading horizon Payment Financial Technologies is expected to generate 2.63 times more return on investment than Abra Information. However, Payment Financial is 2.63 times more volatile than Abra Information Technologies. It trades about 0.47 of its potential returns per unit of risk. Abra Information Technologies is currently generating about 0.58 per unit of risk. If you would invest 31,800 in Payment Financial Technologies on October 25, 2024 and sell it today you would earn a total of 11,820 from holding Payment Financial Technologies or generate 37.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Payment Financial Technologies vs. Abra Information Technologies
Performance |
| Timeline |
| Payment Financial |
| Abra Information Tec |
Payment Financial and Abra Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payment Financial and Abra Information
The main advantage of trading using opposite Payment Financial and Abra Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payment Financial position performs unexpectedly, Abra Information 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 Abra Information will offset losses from the drop in Abra Information's long position.| Payment Financial vs. B Communications | Payment Financial vs. Bank Leumi Le Israel | Payment Financial vs. Mobile Max M | Payment Financial vs. Electreon Wireless |
| Abra Information vs. Payment Financial Technologies | Abra Information vs. B Communications | Abra Information vs. Mobile Max M | Abra Information vs. Altshuler Shaham Financial |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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