Correlation Between Payment Financial and Bio View
Can any of the company-specific risk be diversified away by investing in both Payment Financial and Bio View 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 Bio View 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 Bio View, you can compare the effects of market volatilities on Payment Financial and Bio View 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 Bio View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payment Financial and Bio View.
Diversification Opportunities for Payment Financial and Bio View
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Payment and Bio is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Payment Financial Technologies and Bio View in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio View 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 Bio View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio View has no effect on the direction of Payment Financial i.e., Payment Financial and Bio View go up and down completely randomly.
Pair Corralation between Payment Financial and Bio View
Assuming the 90 days trading horizon Payment Financial Technologies is expected to under-perform the Bio View. In addition to that, Payment Financial is 1.06 times more volatile than Bio View. It trades about -0.19 of its total potential returns per unit of risk. Bio View is currently generating about 0.06 per unit of volatility. If you would invest 3,000 in Bio View on December 8, 2024 and sell it today you would earn a total of 90.00 from holding Bio View or generate 3.0% 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. Bio View
Performance |
| Timeline |
| Payment Financial |
| Bio View |
Payment Financial and Bio View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payment Financial and Bio View
The main advantage of trading using opposite Payment Financial and Bio View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payment Financial position performs unexpectedly, Bio View 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 Bio View will offset losses from the drop in Bio View's long position.| Payment Financial vs. Bezeq Israeli Telecommunication | ||
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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