Correlation Between SONASID and HIGHTECH PAYMENT

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

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

Diversification Opportunities for SONASID and HIGHTECH PAYMENT

0.0

Correlation Coefficient

SONASID  HIGHTECH PAYMENT

Pay attention - limited upside

The 3 months correlation between SONASID and HIGHTECH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SONASID and HIGHTECH PAYMENT SYSTEMS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIGHTECH PAYMENT SYSTEMS and SONASID 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 SONASID are associated (or correlated) with HIGHTECH PAYMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIGHTECH PAYMENT SYSTEMS has no effect on the direction of SONASID i.e., SONASID and HIGHTECH PAYMENT go up and down completely randomly.

Pair Corralation between SONASID and HIGHTECH PAYMENT

If you would invest  56,580  in HIGHTECH PAYMENT SYSTEMS on December 25, 2024 and sell it today you would earn a total of  5,120  from holding HIGHTECH PAYMENT SYSTEMS or generate 9.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

SONASID  vs.  HIGHTECH PAYMENT SYSTEMS

SONASID

Risk-Adjusted Performance

Very Weak

Over the last 90 days SONASID has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SONASID is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

HIGHTECH PAYMENT SYSTEMS

Risk-Adjusted Performance

Modest

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

Pair Trading with SONASID and HIGHTECH PAYMENT

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

The idea behind SONASID and HIGHTECH PAYMENT SYSTEMS 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.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.