Correlation Between Paysafe and Samfine Creation

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

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

Diversification Opportunities for Paysafe and Samfine Creation

0.09

Correlation Coefficient

Paysafe  Samfine Creation

Significant diversification

The 3 months correlation between Paysafe and Samfine is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Paysafe and Samfine Creation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samfine Creation Holdings and Paysafe 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 Paysafe are associated (or correlated) with Samfine Creation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samfine Creation Holdings has no effect on the direction of Paysafe i.e., Paysafe and Samfine Creation go up and down completely randomly.

Pair Corralation between Paysafe and Samfine Creation

Given the investment horizon of 90 days Paysafe is expected to generate 0.56 times more return on investment than Samfine Creation. However, Paysafe is 1.78 times less risky than Samfine Creation. It trades about 0.03 of its potential returns per unit of risk. Samfine Creation Holdings is currently generating about -0.07 per unit of risk. If you would invest  1,712  in Paysafe on December 29, 2024 and sell it today you would earn a total of  8.00  from holding Paysafe or generate 0.47% return on investment over 90 days.

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

Paysafe  vs.  Samfine Creation Holdings

Paysafe

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Paysafe are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Paysafe may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Samfine Creation Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Samfine Creation Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Paysafe and Samfine Creation

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

The idea behind Paysafe and Samfine Creation 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 Transaction History module to view history of all your transactions and understand their impact on performance.