Correlation Between Payment Financial and Fantasy Network
Can any of the company-specific risk be diversified away by investing in both Payment Financial and Fantasy Network 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 Fantasy Network 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 Fantasy Network, you can compare the effects of market volatilities on Payment Financial and Fantasy Network 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 Fantasy Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payment Financial and Fantasy Network.
Diversification Opportunities for Payment Financial and Fantasy Network
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Payment and Fantasy is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Payment Financial Technologies and Fantasy Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fantasy Network 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 Fantasy Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fantasy Network has no effect on the direction of Payment Financial i.e., Payment Financial and Fantasy Network go up and down completely randomly.
Pair Corralation between Payment Financial and Fantasy Network
Assuming the 90 days trading horizon Payment Financial Technologies is expected to generate 0.68 times more return on investment than Fantasy Network. However, Payment Financial Technologies is 1.47 times less risky than Fantasy Network. It trades about 0.0 of its potential returns per unit of risk. Fantasy Network is currently generating about -0.07 per unit of risk. If you would invest 36,633 in Payment Financial Technologies on September 12, 2024 and sell it today you would lose (3,803) from holding Payment Financial Technologies or give up 10.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.61% |
| Values | Daily Returns |
Payment Financial Technologies vs. Fantasy Network
Performance |
| Timeline |
| Payment Financial |
| Fantasy Network |
Payment Financial and Fantasy Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payment Financial and Fantasy Network
The main advantage of trading using opposite Payment Financial and Fantasy Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payment Financial position performs unexpectedly, Fantasy Network 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 Fantasy Network will offset losses from the drop in Fantasy Network's long position.| Payment Financial vs. Automatic Bank Services | Payment Financial vs. Opal Balance | Payment Financial vs. B Communications | Payment Financial vs. Mivne Real Estate |
| Fantasy Network vs. Rimon Consulting Management | Fantasy Network vs. Technoplus Ventures | Fantasy Network vs. MediPress Health Limited Partnership | Fantasy Network vs. Payment Financial 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |