Correlation Between Paysign and Informatica

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

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

Diversification Opportunities for Paysign and Informatica

0.69

Correlation Coefficient

Paysign  Informatica

Poor diversification

The 3 months correlation between Paysign and Informatica is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Paysign and Informatica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Informatica and Paysign 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 Paysign are associated (or correlated) with Informatica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Informatica has no effect on the direction of Paysign i.e., Paysign and Informatica go up and down completely randomly.

Pair Corralation between Paysign and Informatica

Given the investment horizon of 90 days Paysign is expected to generate 1.22 times more return on investment than Informatica. However, Paysign is 1.22 times more volatile than Informatica. It trades about -0.13 of its potential returns per unit of risk. Informatica is currently generating about -0.16 per unit of risk. If you would invest  307.00  in Paysign on December 30, 2024 and sell it today you would lose (94.00) from holding Paysign or give up 30.62% of portfolio value over 90 days.

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

Paysign  vs.  Informatica

Paysign

Risk-Adjusted Performance

Very Weak

Over the last 90 days Paysign has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Informatica

Risk-Adjusted Performance

Very Weak

Over the last 90 days Informatica has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Paysign and Informatica

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

The idea behind Paysign and Informatica 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.