Correlation Between NYSE Composite and Pagaya Technologies
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Pagaya Technologies 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 NYSE Composite and Pagaya Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Pagaya Technologies Ltd, you can compare the effects of market volatilities on NYSE Composite and Pagaya Technologies 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 NYSE Composite with a short position of Pagaya Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Pagaya Technologies.
Diversification Opportunities for NYSE Composite and Pagaya Technologies
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between NYSE and Pagaya is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Pagaya Technologies Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pagaya Technologies and NYSE Composite 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 NYSE Composite are associated (or correlated) with Pagaya Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pagaya Technologies has no effect on the direction of NYSE Composite i.e., NYSE Composite and Pagaya Technologies go up and down completely randomly.
Pair Corralation between NYSE Composite and Pagaya Technologies
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.15 times more return on investment than Pagaya Technologies. However, NYSE Composite is 6.84 times less risky than Pagaya Technologies. It trades about 0.02 of its potential returns per unit of risk. Pagaya Technologies Ltd is currently generating about -0.13 per unit of risk. If you would invest 1,907,793 in NYSE Composite on December 29, 2024 and sell it today you would earn a total of 19,237 from holding NYSE Composite or generate 1.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
NYSE Composite vs. Pagaya Technologies Ltd
Performance |
Timeline |
NYSE Composite and Pagaya Technologies Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Pagaya Technologies Ltd
Pair trading matchups for Pagaya Technologies
Pair Trading with NYSE Composite and Pagaya Technologies
The main advantage of trading using opposite NYSE Composite and Pagaya Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Pagaya Technologies 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 Pagaya Technologies will offset losses from the drop in Pagaya Technologies' long position.NYSE Composite vs. Cimpress NV | NYSE Composite vs. NorthWestern | NYSE Composite vs. BOS Better Online | NYSE Composite vs. California Water Service |
Pagaya Technologies vs. Pagaya Technologies | Pagaya Technologies vs. Thayer Ventures Acquisition | Pagaya Technologies vs. Revelation Biosciences |
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.
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