Correlation Between PayPal Holdings and Mccoy Global
Can any of the company-specific risk be diversified away by investing in both PayPal Holdings and Mccoy Global 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 Mccoy Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PayPal Holdings and Mccoy Global, you can compare the effects of market volatilities on PayPal Holdings and Mccoy Global 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 Mccoy Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and Mccoy Global.
Diversification Opportunities for PayPal Holdings and Mccoy Global
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between PayPal and Mccoy is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and Mccoy Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mccoy Global 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 Mccoy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mccoy Global has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and Mccoy Global go up and down completely randomly.
Pair Corralation between PayPal Holdings and Mccoy Global
Given the investment horizon of 90 days PayPal Holdings is expected to under-perform the Mccoy Global. But the stock apears to be less risky and, when comparing its historical volatility, PayPal Holdings is 1.57 times less risky than Mccoy Global. The stock trades about -0.16 of its potential returns per unit of risk. The Mccoy Global is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 281.00 in Mccoy Global on December 28, 2024 and sell it today you would earn a total of 33.00 from holding Mccoy Global or generate 11.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
PayPal Holdings vs. Mccoy Global
Performance |
Timeline |
PayPal Holdings |
Mccoy Global |
PayPal Holdings and Mccoy Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PayPal Holdings and Mccoy Global
The main advantage of trading using opposite PayPal Holdings and Mccoy Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings position performs unexpectedly, Mccoy Global 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 Mccoy Global will offset losses from the drop in Mccoy Global's long position.PayPal Holdings vs. American Express | PayPal Holdings vs. Capital One Financial | PayPal Holdings vs. Upstart Holdings | PayPal Holdings vs. Ally Financial |
Mccoy Global vs. Bri Chem Corp | Mccoy Global vs. High Arctic Energy | Mccoy Global vs. PHX Energy Services |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |