Correlation Between Paysafe and Greenfire Resources
Can any of the company-specific risk be diversified away by investing in both Paysafe and Greenfire Resources 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 Greenfire Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paysafe and Greenfire Resources, you can compare the effects of market volatilities on Paysafe and Greenfire Resources 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 Greenfire Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paysafe and Greenfire Resources.
Diversification Opportunities for Paysafe and Greenfire Resources
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Paysafe and Greenfire is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Paysafe and Greenfire Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenfire Resources 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 Greenfire Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenfire Resources has no effect on the direction of Paysafe i.e., Paysafe and Greenfire Resources go up and down completely randomly.
Pair Corralation between Paysafe and Greenfire Resources
Given the investment horizon of 90 days Paysafe is expected to generate 1.37 times more return on investment than Greenfire Resources. However, Paysafe is 1.37 times more volatile than Greenfire Resources. It trades about 0.34 of its potential returns per unit of risk. Greenfire Resources is currently generating about -0.42 per unit of risk. If you would invest 1,747 in Paysafe on November 4, 2024 and sell it today you would earn a total of 193.00 from holding Paysafe or generate 11.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Paysafe vs. Greenfire Resources
Performance |
| Timeline |
| Paysafe |
| Greenfire Resources |
Paysafe and Greenfire Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paysafe and Greenfire Resources
The main advantage of trading using opposite Paysafe and Greenfire Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paysafe position performs unexpectedly, Greenfire Resources 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 Greenfire Resources will offset losses from the drop in Greenfire Resources' long position.| Paysafe vs. Skillz Platform | Paysafe vs. SoFi Technologies | Paysafe vs. Clover Health Investments | Paysafe vs. Opendoor Technologies |
| Greenfire Resources vs. Univest Pennsylvania | Greenfire Resources vs. Bridgford Foods | Greenfire Resources vs. Cheche Group Class | Greenfire Resources vs. Mamas Creations |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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