Correlation Between CLPS and Nayax

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

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

Diversification Opportunities for CLPS and Nayax

0.72

Correlation Coefficient

CLPS  Nayax

Poor diversification

The 3 months correlation between CLPS and Nayax is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding CLPS Inc and Nayax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nayax and CLPS 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 CLPS Inc are associated (or correlated) with Nayax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nayax has no effect on the direction of CLPS i.e., CLPS and Nayax go up and down completely randomly.

Pair Corralation between CLPS and Nayax

Given the investment horizon of 90 days CLPS is expected to generate 3.84 times less return on investment than Nayax. In addition to that, CLPS is 1.32 times more volatile than Nayax. It trades about 0.03 of its total potential returns per unit of risk. Nayax is currently generating about 0.15 per unit of volatility. If you would invest  2,871  in Nayax on December 28, 2024 and sell it today you would earn a total of  631.00  from holding Nayax or generate 21.98% return on investment over 90 days.

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

CLPS Inc  vs.  Nayax

CLPS Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CLPS Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, CLPS is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Nayax

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nayax are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Nayax showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CLPS and Nayax

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

The idea behind CLPS Inc and Nayax 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.