Correlation Between International Money and Remitly Global

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

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

Diversification Opportunities for International Money and Remitly Global

0.85

Correlation Coefficient

International Money  Remitly Global

Very poor diversification

The 3 months correlation between International and Remitly is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding International Money Express and Remitly Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Remitly Global and International Money 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 International Money Express are associated (or correlated) with Remitly Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Remitly Global has no effect on the direction of International Money i.e., International Money and Remitly Global go up and down completely randomly.

Pair Corralation between International Money and Remitly Global

Given the investment horizon of 90 days International Money is expected to generate 7.75 times less return on investment than Remitly Global. In addition to that, International Money is 1.05 times more volatile than Remitly Global. It trades about 0.02 of its total potential returns per unit of risk. Remitly Global is currently generating about 0.18 per unit of volatility. If you would invest  1,209  in Remitly Global on September 15, 2024 and sell it today you would earn a total of  865.00  from holding Remitly Global or generate 71.55% return on investment over 90 days.

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

International Money Express  vs.  Remitly Global

International Money

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in International Money Express are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, International Money demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Remitly Global

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Remitly Global are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady essential indicators, Remitly Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with International Money and Remitly Global

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

The idea behind International Money Express and Remitly 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.