Correlation Between PayPal Holdings and 05526DBB0
Specify exactly 2 symbols:
By analyzing existing cross correlation between PayPal Holdings and B A T, you can compare the effects of market volatilities on PayPal Holdings and 05526DBB0 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 05526DBB0. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and 05526DBB0.
Diversification Opportunities for PayPal Holdings and 05526DBB0
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PayPal and 05526DBB0 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and B A T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 05526DBB0 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 05526DBB0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 05526DBB0 has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and 05526DBB0 go up and down completely randomly.
Pair Corralation between PayPal Holdings and 05526DBB0
Given the investment horizon of 90 days PayPal Holdings is expected to under-perform the 05526DBB0. In addition to that, PayPal Holdings is 28.5 times more volatile than B A T. It trades about -0.27 of its total potential returns per unit of risk. B A T is currently generating about 0.23 per unit of volatility. If you would invest 9,691 in B A T on November 28, 2024 and sell it today you would earn a total of 54.00 from holding B A T or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PayPal Holdings vs. B A T
Performance |
| Timeline |
| PayPal Holdings |
| 05526DBB0 |
PayPal Holdings and 05526DBB0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PayPal Holdings and 05526DBB0
The main advantage of trading using opposite PayPal Holdings and 05526DBB0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings position performs unexpectedly, 05526DBB0 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 05526DBB0 will offset losses from the drop in 05526DBB0'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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |