Correlation Between Pagaya Technologies and Remark Holdings

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

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

Diversification Opportunities for Pagaya Technologies and Remark Holdings

0.07

Correlation Coefficient

Pagaya Technologies  Remark Holdings

Significant diversification

The 3 months correlation between Pagaya and Remark is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Pagaya Technologies and Remark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Remark Holdings and Pagaya Technologies 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 Pagaya Technologies are associated (or correlated) with Remark Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Remark Holdings has no effect on the direction of Pagaya Technologies i.e., Pagaya Technologies and Remark Holdings go up and down completely randomly.

Pair Corralation between Pagaya Technologies and Remark Holdings

If you would invest  1,251  in Pagaya Technologies on September 4, 2024 and sell it today you would lose (170.00) from holding Pagaya Technologies or give up 13.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Pagaya Technologies  vs.  Remark Holdings

Pagaya Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pagaya Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Pagaya Technologies is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Remark Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Remark Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Remark Holdings is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Pagaya Technologies and Remark Holdings

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

The idea behind Pagaya Technologies and Remark Holdings 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.