Correlation Between PayPal Holdings and Calissio Resources
Can any of the company-specific risk be diversified away by investing in both PayPal Holdings and Calissio 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 PayPal Holdings and Calissio Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PayPal Holdings and Calissio Resources Group, you can compare the effects of market volatilities on PayPal Holdings and Calissio 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 PayPal Holdings with a short position of Calissio Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and Calissio Resources.
Diversification Opportunities for PayPal Holdings and Calissio Resources
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between PayPal and Calissio is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and Calissio Resources Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calissio Resources 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 Calissio Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calissio Resources has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and Calissio Resources go up and down completely randomly.
Pair Corralation between PayPal Holdings and Calissio Resources
Given the investment horizon of 90 days PayPal Holdings is expected to under-perform the Calissio Resources. But the stock apears to be less risky and, when comparing its historical volatility, PayPal Holdings is 20.2 times less risky than Calissio Resources. The stock trades about -0.28 of its potential returns per unit of risk. The Calissio Resources Group is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Calissio Resources Group on November 28, 2024 and sell it today you would earn a total of 0.03 from holding Calissio Resources Group or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PayPal Holdings vs. Calissio Resources Group
Performance |
| Timeline |
| PayPal Holdings |
| Calissio Resources |
PayPal Holdings and Calissio Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PayPal Holdings and Calissio Resources
The main advantage of trading using opposite PayPal Holdings and Calissio Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings position performs unexpectedly, Calissio 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 Calissio Resources will offset losses from the drop in Calissio Resources' long position.| PayPal Holdings vs. SoFi Technologies | PayPal Holdings vs. Visa Class A | PayPal Holdings vs. Mastercard | PayPal Holdings vs. Capital One Financial |
| Calissio Resources vs. Tarku Resources | Calissio Resources vs. Green Shift Commodities | Calissio Resources vs. Red Moon Resources | Calissio Resources vs. Aldebaran Resources |
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 CEOs Directory module to screen CEOs from public companies around the world.
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