Correlation Between Repay Holdings and Sterling Check
Can any of the company-specific risk be diversified away by investing in both Repay Holdings and Sterling Check 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 Repay Holdings and Sterling Check into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repay Holdings Corp and Sterling Check Corp, you can compare the effects of market volatilities on Repay Holdings and Sterling Check 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 Repay Holdings with a short position of Sterling Check. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repay Holdings and Sterling Check.
Diversification Opportunities for Repay Holdings and Sterling Check
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Repay and Sterling is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Repay Holdings Corp and Sterling Check Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Check Corp and Repay 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 Repay Holdings Corp are associated (or correlated) with Sterling Check. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Check Corp has no effect on the direction of Repay Holdings i.e., Repay Holdings and Sterling Check go up and down completely randomly.
Pair Corralation between Repay Holdings and Sterling Check
Given the investment horizon of 90 days Repay Holdings is expected to generate 2.32 times less return on investment than Sterling Check. In addition to that, Repay Holdings is 1.19 times more volatile than Sterling Check Corp. It trades about 0.02 of its total potential returns per unit of risk. Sterling Check Corp is currently generating about 0.07 per unit of volatility. If you would invest 1,266 in Sterling Check Corp on August 26, 2024 and sell it today you would earn a total of 408.00 from holding Sterling Check Corp or generate 32.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.17% |
| Values | Daily Returns |
Repay Holdings Corp vs. Sterling Check Corp
Performance |
| Timeline |
| Repay Holdings Corp |
| Sterling Check Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Repay Holdings and Sterling Check Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repay Holdings and Sterling Check
The main advantage of trading using opposite Repay Holdings and Sterling Check positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repay Holdings position performs unexpectedly, Sterling Check 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 Sterling Check will offset losses from the drop in Sterling Check's long position.| Repay Holdings vs. Oneconnect Financial Technology | Repay Holdings vs. Global Business Travel | Repay Holdings vs. Alight Inc | Repay Holdings vs. CS Disco LLC |
| Sterling Check vs. EverCommerce | Sterling Check vs. Evertec | Sterling Check vs. Consensus Cloud Solutions | Sterling Check vs. CSG Systems International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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