Correlation Between Paysign and Glimpse

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

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

Diversification Opportunities for Paysign and Glimpse

0.67

Correlation Coefficient

Paysign  Glimpse

Poor diversification

The 3 months correlation between Paysign and Glimpse is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Paysign and Glimpse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glimpse Group 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 Glimpse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glimpse Group has no effect on the direction of Paysign i.e., Paysign and Glimpse go up and down completely randomly.

Pair Corralation between Paysign and Glimpse

Given the investment horizon of 90 days Paysign is expected to under-perform the Glimpse. But the stock apears to be less risky and, when comparing its historical volatility, Paysign is 2.48 times less risky than Glimpse. The stock trades about -0.14 of its potential returns per unit of risk. The Glimpse Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  86.00  in Glimpse Group on September 4, 2024 and sell it today you would lose (12.00) from holding Glimpse Group or give up 13.95% of portfolio value over 90 days.

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

Paysign  vs.  Glimpse Group

Paysign

Risk-Adjusted Performance

0 of 100

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 January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Glimpse Group

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Glimpse Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Glimpse is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Paysign and Glimpse

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

The idea behind Paysign and Glimpse Group 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.