Correlation Between Kerry Logistics and Paysafe

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

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

Diversification Opportunities for Kerry Logistics and Paysafe

-0.12

Correlation Coefficient

Kerry Logistics  Paysafe

Good diversification

The 3 months correlation between Kerry and Paysafe is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kerry Logistics Network and Paysafe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysafe and Kerry Logistics 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 Kerry Logistics Network are associated (or correlated) with Paysafe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysafe has no effect on the direction of Kerry Logistics i.e., Kerry Logistics and Paysafe go up and down completely randomly.

Pair Corralation between Kerry Logistics and Paysafe

Assuming the 90 days horizon Kerry Logistics Network is expected to under-perform the Paysafe. But the otc stock apears to be less risky and, when comparing its historical volatility, Kerry Logistics Network is 1.85 times less risky than Paysafe. The otc stock trades about -0.12 of its potential returns per unit of risk. The Paysafe is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,712  in Paysafe on December 29, 2024 and sell it today you would earn a total of  8.00  from holding Paysafe or generate 0.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

Kerry Logistics Network  vs.  Paysafe

Kerry Logistics Network

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kerry Logistics Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Paysafe

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Paysafe are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Paysafe may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Kerry Logistics and Paysafe

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

The idea behind Kerry Logistics Network and Paysafe 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.

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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.