Correlation Between Walkme and PAR Technology
Can any of the company-specific risk be diversified away by investing in both Walkme and PAR Technology 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 Walkme and PAR Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walkme and PAR Technology, you can compare the effects of market volatilities on Walkme and PAR Technology 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 Walkme with a short position of PAR Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walkme and PAR Technology.
Diversification Opportunities for Walkme and PAR Technology
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walkme and PAR is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Walkme and PAR Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAR Technology and Walkme 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 Walkme are associated (or correlated) with PAR Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAR Technology has no effect on the direction of Walkme i.e., Walkme and PAR Technology go up and down completely randomly.
Pair Corralation between Walkme and PAR Technology
If you would invest 5,986 in PAR Technology on August 28, 2024 and sell it today you would earn a total of 1,847 from holding PAR Technology or generate 30.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Walkme vs. PAR Technology
Performance |
| Timeline |
| Walkme |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
| PAR Technology |
Walkme and PAR Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walkme and PAR Technology
The main advantage of trading using opposite Walkme and PAR Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walkme position performs unexpectedly, PAR Technology 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 PAR Technology will offset losses from the drop in PAR Technology's long position.The idea behind Walkme and PAR Technology 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.| PAR Technology vs. Plexus Corp | PAR Technology vs. Jabil Circuit | PAR Technology vs. Sanmina | PAR Technology vs. Methode Electronics |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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