Correlation Between PayPal Holdings and Tingyi Holding
Can any of the company-specific risk be diversified away by investing in both PayPal Holdings and Tingyi Holding 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 Tingyi Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PayPal Holdings and Tingyi Holding Corp, you can compare the effects of market volatilities on PayPal Holdings and Tingyi Holding 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 Tingyi Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and Tingyi Holding.
Diversification Opportunities for PayPal Holdings and Tingyi Holding
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PayPal and Tingyi is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and Tingyi Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingyi Holding Corp 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 Tingyi Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tingyi Holding Corp has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and Tingyi Holding go up and down completely randomly.
Pair Corralation between PayPal Holdings and Tingyi Holding
If you would invest 8,731 in PayPal Holdings on September 14, 2024 and sell it today you would earn a total of 209.00 from holding PayPal Holdings or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
PayPal Holdings vs. Tingyi Holding Corp
Performance |
| Timeline |
| PayPal Holdings |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PayPal Holdings and Tingyi Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PayPal Holdings and Tingyi Holding
The main advantage of trading using opposite PayPal Holdings and Tingyi Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings position performs unexpectedly, Tingyi Holding 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 Tingyi Holding will offset losses from the drop in Tingyi Holding's long position.| PayPal Holdings vs. SoFi Technologies | PayPal Holdings vs. Visa Class A | PayPal Holdings vs. Mastercard | PayPal Holdings vs. Capital One Financial |
| Tingyi Holding vs. Torque Lifestyle Brands | Tingyi Holding vs. Naturally Splendid Enterprises | Tingyi Holding vs. Aryzta AG PK | Tingyi Holding vs. First Pacific |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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