Correlation Between Repay Holdings and MicroAlgo

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

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

Diversification Opportunities for Repay Holdings and MicroAlgo

-0.04

Correlation Coefficient

Repay Holdings  MicroAlgo

Good diversification

The 3 months correlation between Repay and MicroAlgo is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Repay Holdings Corp and MicroAlgo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroAlgo and Repay 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 Repay Holdings Corp are associated (or correlated) with MicroAlgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroAlgo has no effect on the direction of Repay Holdings i.e., Repay Holdings and MicroAlgo go up and down completely randomly.

Pair Corralation between Repay Holdings and MicroAlgo

Given the investment horizon of 90 days Repay Holdings Corp is expected to generate 0.22 times more return on investment than MicroAlgo. However, Repay Holdings Corp is 4.63 times less risky than MicroAlgo. It trades about -0.01 of its potential returns per unit of risk. MicroAlgo is currently generating about -0.06 per unit of risk. If you would invest  846.00  in Repay Holdings Corp on August 30, 2024 and sell it today you would lose (25.00) from holding Repay Holdings Corp or give up 2.96% of portfolio value over 90 days.

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

Repay Holdings Corp  vs.  MicroAlgo

Repay Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Repay Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Repay Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

MicroAlgo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MicroAlgo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in December 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Repay Holdings and MicroAlgo

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

The idea behind Repay Holdings Corp and MicroAlgo 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.