Correlation Between Pagaya Technologies and Talkspace

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

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

Diversification Opportunities for Pagaya Technologies and Talkspace

0.0

Correlation Coefficient

Pagaya Technologies  Talkspace

Pay attention - limited upside

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

Pair Corralation between Pagaya Technologies and Talkspace

Assuming the 90 days horizon Pagaya Technologies Ltd is expected to under-perform the Talkspace. In addition to that, Pagaya Technologies is 1.13 times more volatile than Talkspace. It trades about -0.04 of its total potential returns per unit of risk. Talkspace is currently generating about 0.2 per unit of volatility. If you would invest  4.63  in Talkspace on September 14, 2024 and sell it today you would earn a total of  9.37  from holding Talkspace or generate 202.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Pagaya Technologies Ltd  vs.  Talkspace

Pagaya Technologies

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Pagaya Technologies Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak 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.

Talkspace

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Talkspace are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal forward-looking signals, Talkspace showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pagaya Technologies and Talkspace

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

The idea behind Pagaya Technologies Ltd and Talkspace 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..