Correlation Between Wejo and Paysign
Can any of the company-specific risk be diversified away by investing in both Wejo and Paysign 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 Wejo and Paysign into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wejo Group and Paysign, you can compare the effects of market volatilities on Wejo and Paysign 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 Wejo with a short position of Paysign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wejo and Paysign.
Diversification Opportunities for Wejo and Paysign
Poor diversification
The 3 months correlation between Wejo and Paysign is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Wejo Group and Paysign in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysign and Wejo 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 Wejo Group are associated (or correlated) with Paysign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysign has no effect on the direction of Wejo i.e., Wejo and Paysign go up and down completely randomly.
Pair Corralation between Wejo and Paysign
If you would invest 2.80 in Wejo Group on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Wejo Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Wejo Group vs. Paysign
Performance |
| Timeline |
| Wejo Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Paysign |
Wejo and Paysign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wejo and Paysign
The main advantage of trading using opposite Wejo and Paysign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wejo position performs unexpectedly, Paysign 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 Paysign will offset losses from the drop in Paysign's long position.The idea behind Wejo Group and Paysign pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Paysign vs. NetScout Systems | Paysign vs. Priority Technology Holdings | Paysign vs. OneSpan | Paysign vs. Consensus Cloud Solutions |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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