Correlation Between Payoneer Global and Canlan Ice

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

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

Diversification Opportunities for Payoneer Global and Canlan Ice

0.4

Correlation Coefficient

Payoneer Global  Canlan Ice

Very weak diversification

The 3 months correlation between Payoneer and Canlan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Payoneer Global and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports and Payoneer Global 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 Payoneer Global are associated (or correlated) with Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Payoneer Global i.e., Payoneer Global and Canlan Ice go up and down completely randomly.

Pair Corralation between Payoneer Global and Canlan Ice

Given the investment horizon of 90 days Payoneer Global is expected to generate 30.91 times more return on investment than Canlan Ice. However, Payoneer Global is 30.91 times more volatile than Canlan Ice Sports. It trades about 0.07 of its potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.13 per unit of risk. If you would invest  621.00  in Payoneer Global on September 26, 2024 and sell it today you would earn a total of  378.00  from holding Payoneer Global or generate 60.87% return on investment over 90 days.

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

Payoneer Global  vs.  Canlan Ice Sports

Payoneer Global

Risk-Adjusted Performance

11 of 100

Good

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

Canlan Ice Sports

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Canlan Ice Sports are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Canlan Ice is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Payoneer Global and Canlan Ice

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

The idea behind Payoneer Global and Canlan Ice Sports 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.