Correlation Between PayPal Holdings and CARRIER
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By analyzing existing cross correlation between PayPal Holdings and CARRIER GLOBAL P, you can compare the effects of market volatilities on PayPal Holdings and CARRIER 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 CARRIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and CARRIER.
Diversification Opportunities for PayPal Holdings and CARRIER
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PayPal and CARRIER is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and CARRIER GLOBAL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARRIER GLOBAL P 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 CARRIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARRIER GLOBAL P has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and CARRIER go up and down completely randomly.
Pair Corralation between PayPal Holdings and CARRIER
Given the investment horizon of 90 days PayPal Holdings is expected to under-perform the CARRIER. In addition to that, PayPal Holdings is 2.78 times more volatile than CARRIER GLOBAL P. It trades about -0.24 of its total potential returns per unit of risk. CARRIER GLOBAL P is currently generating about -0.17 per unit of volatility. If you would invest 9,983 in CARRIER GLOBAL P on December 5, 2024 and sell it today you would lose (522.00) from holding CARRIER GLOBAL P or give up 5.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 76.92% |
Values | Daily Returns |
PayPal Holdings vs. CARRIER GLOBAL P
Performance |
Timeline |
PayPal Holdings |
CARRIER GLOBAL P |
PayPal Holdings and CARRIER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PayPal Holdings and CARRIER
The main advantage of trading using opposite PayPal Holdings and CARRIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings position performs unexpectedly, CARRIER 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 CARRIER will offset losses from the drop in CARRIER's long position.PayPal Holdings vs. SoFi Technologies | PayPal Holdings vs. Visa Class A | PayPal Holdings vs. Mastercard | PayPal Holdings vs. Capital One Financial |
CARRIER vs. FactSet Research Systems | CARRIER vs. ZW Data Action | CARRIER vs. Stagwell | CARRIER vs. National CineMedia |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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