Correlation Between PayPal Holdings and Bonava AB
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By analyzing existing cross correlation between PayPal Holdings and Bonava AB, you can compare the effects of market volatilities on PayPal Holdings and Bonava AB 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 Bonava AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and Bonava AB.
Diversification Opportunities for PayPal Holdings and Bonava AB
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between PayPal and Bonava is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and Bonava AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonava AB 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 are associated (or correlated) with Bonava AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonava AB has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and Bonava AB go up and down completely randomly.
Pair Corralation between PayPal Holdings and Bonava AB
Given the investment horizon of 90 days PayPal Holdings is expected to generate 0.65 times more return on investment than Bonava AB. However, PayPal Holdings is 1.55 times less risky than Bonava AB. It trades about 0.31 of its potential returns per unit of risk. Bonava AB is currently generating about -0.03 per unit of risk. If you would invest 7,925 in PayPal Holdings on September 6, 2024 and sell it today you would earn a total of 1,008 from holding PayPal Holdings or generate 12.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PayPal Holdings vs. Bonava AB
Performance |
Timeline |
PayPal Holdings |
Bonava AB |
PayPal Holdings and Bonava AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PayPal Holdings and Bonava AB
The main advantage of trading using opposite PayPal Holdings and Bonava AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings position performs unexpectedly, Bonava AB 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 Bonava AB will offset losses from the drop in Bonava AB's long position.PayPal Holdings vs. SoFi Technologies | PayPal Holdings vs. Visa Class A | PayPal Holdings vs. Mastercard | PayPal Holdings vs. Capital One Financial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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