Correlation Between Papaya Growth and NSTAR
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By analyzing existing cross correlation between Papaya Growth Opportunity and NSTAR ELEC 32, you can compare the effects of market volatilities on Papaya Growth and NSTAR 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 Papaya Growth with a short position of NSTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Papaya Growth and NSTAR.
Diversification Opportunities for Papaya Growth and NSTAR
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Papaya and NSTAR is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Papaya Growth Opportunity and NSTAR ELEC 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSTAR ELEC 32 and Papaya Growth 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 Papaya Growth Opportunity are associated (or correlated) with NSTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSTAR ELEC 32 has no effect on the direction of Papaya Growth i.e., Papaya Growth and NSTAR go up and down completely randomly.
Pair Corralation between Papaya Growth and NSTAR
Assuming the 90 days horizon Papaya Growth Opportunity is expected to generate 5.52 times more return on investment than NSTAR. However, Papaya Growth is 5.52 times more volatile than NSTAR ELEC 32. It trades about 0.02 of its potential returns per unit of risk. NSTAR ELEC 32 is currently generating about -0.02 per unit of risk. If you would invest 1,075 in Papaya Growth Opportunity on September 14, 2024 and sell it today you would earn a total of 44.00 from holding Papaya Growth Opportunity or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.96% |
| Values | Daily Returns |
Papaya Growth Opportunity vs. NSTAR ELEC 32
Performance |
| Timeline |
| Papaya Growth Opportunity |
| NSTAR ELEC 32 |
Papaya Growth and NSTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Papaya Growth and NSTAR
The main advantage of trading using opposite Papaya Growth and NSTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Papaya Growth position performs unexpectedly, NSTAR 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 NSTAR will offset losses from the drop in NSTAR's long position.| Papaya Growth vs. Visa Class A | Papaya Growth vs. Diamond Hill Investment | Papaya Growth vs. Distoken Acquisition | Papaya Growth vs. AllianceBernstein Holding LP |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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