Correlation Between PayPal Holdings and Helix BioPharma

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

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

Diversification Opportunities for PayPal Holdings and Helix BioPharma

0.02

Correlation Coefficient

PayPal Holdings  Helix BioPharma

Significant diversification

The 3 months correlation between PayPal and Helix is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings CDR and Helix BioPharma Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helix BioPharma Corp and PayPal Holdings 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 PayPal Holdings CDR are associated (or correlated) with Helix BioPharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helix BioPharma Corp has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and Helix BioPharma go up and down completely randomly.

Pair Corralation between PayPal Holdings and Helix BioPharma

Assuming the 90 days trading horizon PayPal Holdings CDR is expected to generate 0.53 times more return on investment than Helix BioPharma. However, PayPal Holdings CDR is 1.89 times less risky than Helix BioPharma. It trades about 0.09 of its potential returns per unit of risk. Helix BioPharma Corp is currently generating about -0.07 per unit of risk. If you would invest  645.00  in PayPal Holdings CDR on October 24, 2024 and sell it today you would earn a total of  22.00  from holding PayPal Holdings CDR or generate 3.41% return on investment over 90 days.

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

PayPal Holdings CDR  vs.  Helix BioPharma Corp

PayPal Holdings CDR

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PayPal Holdings CDR are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, PayPal Holdings may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Helix BioPharma Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Helix BioPharma Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with PayPal Holdings and Helix BioPharma

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

The idea behind PayPal Holdings CDR and Helix BioPharma Corp 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.