Correlation Between PayPal Holdings and Hangzhou Minsheng
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By analyzing existing cross correlation between PayPal Holdings and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on PayPal Holdings and Hangzhou Minsheng 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 PayPal Holdings with a short position of Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and Hangzhou Minsheng.
Diversification Opportunities for PayPal Holdings and Hangzhou Minsheng
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PayPal and Hangzhou is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng and PayPal Holdings 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 PayPal Holdings are associated (or correlated) with Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between PayPal Holdings and Hangzhou Minsheng
Given the investment horizon of 90 days PayPal Holdings is expected to generate 0.62 times more return on investment than Hangzhou Minsheng. However, PayPal Holdings is 1.6 times less risky than Hangzhou Minsheng. It trades about 0.03 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.06 per unit of risk. If you would invest 7,370 in PayPal Holdings on September 3, 2024 and sell it today you would earn a total of 1,307 from holding PayPal Holdings or generate 17.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 60.4% |
| Values | Daily Returns |
PayPal Holdings vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| PayPal Holdings |
| Hangzhou Minsheng |
PayPal Holdings and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PayPal Holdings and Hangzhou Minsheng
The main advantage of trading using opposite PayPal Holdings and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| PayPal Holdings vs. American Express | PayPal Holdings vs. Capital One Financial | PayPal Holdings vs. Upstart Holdings | PayPal Holdings vs. Ally Financial |
| Hangzhou Minsheng vs. Shenzhen Centralcon Investment | Hangzhou Minsheng vs. HeNan Splendor Science | Hangzhou Minsheng vs. Guosheng Financial Holding | Hangzhou Minsheng vs. Ningbo Tech Bank Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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