Correlation Between Stagwell and Papaya Growth
Can any of the company-specific risk be diversified away by investing in both Stagwell and Papaya Growth 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 Stagwell and Papaya Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stagwell and Papaya Growth Opportunity, you can compare the effects of market volatilities on Stagwell and Papaya Growth 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 Stagwell with a short position of Papaya Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stagwell and Papaya Growth.
Diversification Opportunities for Stagwell and Papaya Growth
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stagwell and Papaya is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Stagwell and Papaya Growth Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Papaya Growth Opportunity and Stagwell 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 Stagwell are associated (or correlated) with Papaya Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Papaya Growth Opportunity has no effect on the direction of Stagwell i.e., Stagwell and Papaya Growth go up and down completely randomly.
Pair Corralation between Stagwell and Papaya Growth
If you would invest 1,119 in Papaya Growth Opportunity on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Papaya Growth Opportunity or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stagwell vs. Papaya Growth Opportunity
Performance |
| Timeline |
| Stagwell |
| Papaya Growth Opportunity |
Stagwell and Papaya Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stagwell and Papaya Growth
The main advantage of trading using opposite Stagwell and Papaya Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stagwell position performs unexpectedly, Papaya Growth 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 Papaya Growth will offset losses from the drop in Papaya Growth's long position.| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
| Papaya Growth vs. Visa Class A | Papaya Growth vs. Diamond Hill Investment | Papaya Growth vs. Distoken Acquisition | Papaya Growth vs. AllianceBernstein Holding LP |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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