Correlation Between Paysafe and China Gas
Can any of the company-specific risk be diversified away by investing in both Paysafe and China Gas 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 Paysafe and China Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paysafe and China Gas Holdings, you can compare the effects of market volatilities on Paysafe and China Gas 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 Paysafe with a short position of China Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paysafe and China Gas.
Diversification Opportunities for Paysafe and China Gas
Weak diversification
The 3 months correlation between Paysafe and China is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Paysafe and China Gas Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Gas Holdings and Paysafe 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 Paysafe are associated (or correlated) with China Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Gas Holdings has no effect on the direction of Paysafe i.e., Paysafe and China Gas go up and down completely randomly.
Pair Corralation between Paysafe and China Gas
Given the investment horizon of 90 days Paysafe is expected to generate 1.1 times more return on investment than China Gas. However, Paysafe is 1.1 times more volatile than China Gas Holdings. It trades about 0.02 of its potential returns per unit of risk. China Gas Holdings is currently generating about -0.02 per unit of risk. If you would invest 1,572 in Paysafe on December 4, 2024 and sell it today you would lose (13.00) from holding Paysafe or give up 0.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 15.86% |
| Values | Daily Returns |
Paysafe vs. China Gas Holdings
Performance |
| Timeline |
| Paysafe |
| China Gas Holdings |
Paysafe and China Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paysafe and China Gas
The main advantage of trading using opposite Paysafe and China Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paysafe position performs unexpectedly, China Gas 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 China Gas will offset losses from the drop in China Gas' long position.| Paysafe vs. Skillz Platform | Paysafe vs. SoFi Technologies | Paysafe vs. Clover Health Investments | Paysafe vs. Opendoor Technologies |
| China Gas vs. Skillful Craftsman Education | China Gas vs. Delek Logistics Partners | China Gas vs. 51Talk Online Education | China Gas vs. Afya |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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