Correlation Between PFMT Old and Cass Information

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

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

Diversification Opportunities for PFMT Old and Cass Information

0.0

Correlation Coefficient

PFMT Old  Cass Information

Pay attention - limited upside

The 3 months correlation between PFMT and Cass is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PFMT Old and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems and PFMT Old 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 PFMT Old are associated (or correlated) with Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of PFMT Old i.e., PFMT Old and Cass Information go up and down completely randomly.

Pair Corralation between PFMT Old and Cass Information

If you would invest  4,142  in Cass Information Systems on December 26, 2024 and sell it today you would earn a total of  153.00  from holding Cass Information Systems or generate 3.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

PFMT Old  vs.  Cass Information Systems

PFMT Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days PFMT Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, PFMT Old is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Cass Information Systems

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cass Information Systems are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Cass Information is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with PFMT Old and Cass Information

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

The idea behind PFMT Old and Cass Information Systems 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.