Correlation Between Appian Corp and Payoneer Global

Can any of the company-specific risk be diversified away by investing in both Appian Corp and Payoneer Global 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 Appian Corp and Payoneer Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Appian Corp and Payoneer Global, you can compare the effects of market volatilities on Appian Corp and Payoneer Global 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 Appian Corp with a short position of Payoneer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Appian Corp and Payoneer Global.

Diversification Opportunities for Appian Corp and Payoneer Global

0.83

Correlation Coefficient

Appian Corp  Payoneer Global

Very poor diversification

The 3 months correlation between Appian and Payoneer is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Appian Corp and Payoneer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payoneer Global and Appian Corp 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 Appian Corp are associated (or correlated) with Payoneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payoneer Global has no effect on the direction of Appian Corp i.e., Appian Corp and Payoneer Global go up and down completely randomly.

Pair Corralation between Appian Corp and Payoneer Global

Given the investment horizon of 90 days Appian Corp is expected to under-perform the Payoneer Global. In addition to that, Appian Corp is 1.32 times more volatile than Payoneer Global. It trades about -0.13 of its total potential returns per unit of risk. Payoneer Global is currently generating about -0.16 per unit of volatility. If you would invest  1,093  in Payoneer Global on September 23, 2024 and sell it today you would lose (81.00) from holding Payoneer Global or give up 7.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Appian Corp  vs.  Payoneer Global

Appian Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Appian Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Appian Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Payoneer Global

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Payoneer Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Payoneer Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Appian Corp and Payoneer Global

The main advantage of trading using opposite Appian Corp and Payoneer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Appian Corp position performs unexpectedly, Payoneer Global 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 Payoneer Global will offset losses from the drop in Payoneer Global's long position.

The idea behind Appian Corp and Payoneer Global 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.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.