Correlation Between Paysafe and 124857AN3

Can any of the company-specific risk be diversified away by investing in both Paysafe and 124857AN3 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 124857AN3 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Paysafe and CBS P NEW, you can compare the effects of market volatilities on Paysafe and 124857AN3 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 124857AN3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paysafe and 124857AN3.

Diversification Opportunities for Paysafe and 124857AN3

-0.36

Correlation Coefficient

Paysafe  124857AN3

Very good diversification

The 3 months correlation between Paysafe and 124857AN3 is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Paysafe and CBS P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBS P NEW 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 124857AN3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBS P NEW has no effect on the direction of Paysafe i.e., Paysafe and 124857AN3 go up and down completely randomly.

Pair Corralation between Paysafe and 124857AN3

Given the investment horizon of 90 days Paysafe is expected to under-perform the 124857AN3. In addition to that, Paysafe is 2.16 times more volatile than CBS P NEW. It trades about -0.03 of its total potential returns per unit of risk. CBS P NEW is currently generating about -0.07 per unit of volatility. If you would invest  7,423  in CBS P NEW on September 12, 2024 and sell it today you would lose (533.00) from holding CBS P NEW or give up 7.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	82.81%
Values	Daily Returns

Paysafe  vs.  CBS P NEW

Paysafe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Paysafe has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

CBS P NEW

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CBS P NEW has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for CBS P NEW investors.

Pair Trading with Paysafe and 124857AN3

The main advantage of trading using opposite Paysafe and 124857AN3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paysafe position performs unexpectedly, 124857AN3 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 124857AN3 will offset losses from the drop in 124857AN3's long position.

The idea behind Paysafe and CBS P NEW 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.