Correlation Between Paycor HCM and Image Protect
Can any of the company-specific risk be diversified away by investing in both Paycor HCM and Image Protect 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 Paycor HCM and Image Protect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paycor HCM and Image Protect, you can compare the effects of market volatilities on Paycor HCM and Image Protect 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 Paycor HCM with a short position of Image Protect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paycor HCM and Image Protect.
Diversification Opportunities for Paycor HCM and Image Protect
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Paycor and Image is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Paycor HCM and Image Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Image Protect and Paycor HCM 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 Paycor HCM are associated (or correlated) with Image Protect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Image Protect has no effect on the direction of Paycor HCM i.e., Paycor HCM and Image Protect go up and down completely randomly.
Pair Corralation between Paycor HCM and Image Protect
Given the investment horizon of 90 days Paycor HCM is expected to generate 3729.75 times less return on investment than Image Protect. But when comparing it to its historical volatility, Paycor HCM is 2287.68 times less risky than Image Protect. It trades about 0.16 of its potential returns per unit of risk. Image Protect is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 0.02 in Image Protect on January 11, 2025 and sell it today you would lose (0.01) from holding Image Protect or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Paycor HCM vs. Image Protect
Performance |
| Timeline |
| Paycor HCM |
| Image Protect |
Paycor HCM and Image Protect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paycor HCM and Image Protect
The main advantage of trading using opposite Paycor HCM and Image Protect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paycor HCM position performs unexpectedly, Image Protect 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 Image Protect will offset losses from the drop in Image Protect's long position.| Paycor HCM vs. Manhattan Associates | Paycor HCM vs. Paycom Soft | Paycor HCM vs. Clearwater Analytics Holdings | Paycor HCM vs. Procore Technologies |
| Image Protect vs. AB International Group | Image Protect vs. Bowmo Inc | Image Protect vs. Protek Capital | Image Protect vs. CurrentC Power |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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