Correlation Between Payment Financial and Blender Financial
Can any of the company-specific risk be diversified away by investing in both Payment Financial and Blender Financial 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 Blender Financial 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 Blender Financial Technologies, you can compare the effects of market volatilities on Payment Financial and Blender Financial 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 Blender Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payment Financial and Blender Financial.
Diversification Opportunities for Payment Financial and Blender Financial
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Payment and Blender is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Payment Financial Technologies and Blender Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blender Financial 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 Blender Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blender Financial has no effect on the direction of Payment Financial i.e., Payment Financial and Blender Financial go up and down completely randomly.
Pair Corralation between Payment Financial and Blender Financial
Assuming the 90 days trading horizon Payment Financial Technologies is expected to generate 1.12 times more return on investment than Blender Financial. However, Payment Financial is 1.12 times more volatile than Blender Financial Technologies. It trades about 0.46 of its potential returns per unit of risk. Blender Financial Technologies is currently generating about 0.29 per unit of risk. If you would invest 32,210 in Payment Financial Technologies on October 24, 2024 and sell it today you would earn a total of 11,790 from holding Payment Financial Technologies or generate 36.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Payment Financial Technologies vs. Blender Financial Technologies
Performance |
| Timeline |
| Payment Financial |
| Blender Financial |
Payment Financial and Blender Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payment Financial and Blender Financial
The main advantage of trading using opposite Payment Financial and Blender Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payment Financial position performs unexpectedly, Blender Financial 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 Blender Financial will offset losses from the drop in Blender Financial's long position.| Payment Financial vs. Isras Investment | Payment Financial vs. Clal Insurance Enterprises | Payment Financial vs. Oron Group Investments | Payment Financial vs. Azorim Investment Development |
| Blender Financial vs. Technoplus Ventures | Blender Financial vs. Sure Tech Investments LP | Blender Financial vs. Rapac Communication Infrastructure | Blender Financial vs. Nrgene Technologies |
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 CEOs Directory module to screen CEOs from public companies around the world.
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