Correlation Between PayPal Holdings and Mint
Can any of the company-specific risk be diversified away by investing in both PayPal Holdings and Mint 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 Mint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PayPal Holdings and The Mint, you can compare the effects of market volatilities on PayPal Holdings and Mint 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 Mint. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and Mint.
Diversification Opportunities for PayPal Holdings and Mint
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PayPal and Mint is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and The Mint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mint 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 Mint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mint has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and Mint go up and down completely randomly.
Pair Corralation between PayPal Holdings and Mint
Given the investment horizon of 90 days PayPal Holdings is expected to generate 30.37 times less return on investment than Mint. But when comparing it to its historical volatility, PayPal Holdings is 18.12 times less risky than Mint. It trades about 0.08 of its potential returns per unit of risk. The Mint is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.93 in The Mint on September 14, 2024 and sell it today you would earn a total of 0.07 from holding The Mint or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
PayPal Holdings vs. The Mint
Performance |
| Timeline |
| PayPal Holdings |
| Mint |
PayPal Holdings and Mint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PayPal Holdings and Mint
The main advantage of trading using opposite PayPal Holdings and Mint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings position performs unexpectedly, Mint 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 Mint will offset losses from the drop in Mint's long position.| PayPal Holdings vs. SoFi Technologies | PayPal Holdings vs. Visa Class A | PayPal Holdings vs. Mastercard | PayPal Holdings vs. Capital One Financial |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |