Correlation Between PayPal Holdings and Psagot Index
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By analyzing existing cross correlation between PayPal Holdings and Psagot Index Funds, you can compare the effects of market volatilities on PayPal Holdings and Psagot Index 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 Psagot Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and Psagot Index.
Diversification Opportunities for PayPal Holdings and Psagot Index
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PayPal and Psagot is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and Psagot Index Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Psagot Index Funds 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 Psagot Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Psagot Index Funds has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and Psagot Index go up and down completely randomly.
Pair Corralation between PayPal Holdings and Psagot Index
Given the investment horizon of 90 days PayPal Holdings is expected to generate 12.3 times more return on investment than Psagot Index. However, PayPal Holdings is 12.3 times more volatile than Psagot Index Funds. It trades about 0.26 of its potential returns per unit of risk. Psagot Index Funds is currently generating about 0.48 per unit of risk. If you would invest 7,813 in PayPal Holdings on September 5, 2024 and sell it today you would earn a total of 701.00 from holding PayPal Holdings or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 68.18% |
| Values | Daily Returns |
PayPal Holdings vs. Psagot Index Funds
Performance |
| Timeline |
| PayPal Holdings |
| Psagot Index Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
PayPal Holdings and Psagot Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PayPal Holdings and Psagot Index
The main advantage of trading using opposite PayPal Holdings and Psagot Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings position performs unexpectedly, Psagot Index 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 Psagot Index will offset losses from the drop in Psagot Index's long position.| PayPal Holdings vs. SoFi Technologies | PayPal Holdings vs. Visa Class A | PayPal Holdings vs. Mastercard | PayPal Holdings vs. Capital One Financial |
| Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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