Correlation Between Payoneer Global and Arbe Robotics

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

By analyzing existing cross correlation between Payoneer Global Warrant and Arbe Robotics, you can compare the effects of market volatilities on Payoneer Global and Arbe Robotics 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 Arbe Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payoneer Global and Arbe Robotics.

Diversification Opportunities for Payoneer Global and Arbe Robotics

-0.57

Correlation Coefficient

Payoneer Global  Arbe Robotics

Excellent diversification

The 3 months correlation between Payoneer and Arbe is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Payoneer Global Warrant and Arbe Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbe Robotics 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 Warrant are associated (or correlated) with Arbe Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbe Robotics has no effect on the direction of Payoneer Global i.e., Payoneer Global and Arbe Robotics go up and down completely randomly.

Pair Corralation between Payoneer Global and Arbe Robotics

Assuming the 90 days horizon Payoneer Global Warrant is expected to generate 1.75 times more return on investment than Arbe Robotics. However, Payoneer Global is 1.75 times more volatile than Arbe Robotics. It trades about 0.03 of its potential returns per unit of risk. Arbe Robotics is currently generating about 0.0 per unit of risk. If you would invest  106.00  in Payoneer Global Warrant on September 3, 2024 and sell it today you would lose (33.00) from holding Payoneer Global Warrant or give up 31.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	87.27%
Values	Daily Returns

Payoneer Global Warrant  vs.  Arbe Robotics

Payoneer Global Warrant

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Payoneer Global Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Arbe Robotics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Arbe Robotics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental drivers remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Payoneer Global and Arbe Robotics

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

The idea behind Payoneer Global Warrant and Arbe Robotics 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.