Correlation Between StarTek and Nayax

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

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

Diversification Opportunities for StarTek and Nayax

0.0

Correlation Coefficient

StarTek  Nayax

Pay attention - limited upside

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

Pair Corralation between StarTek and Nayax

If you would invest  2,963  in Nayax on November 29, 2024 and sell it today you would earn a total of  847.00  from holding Nayax or generate 28.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

StarTek  vs.  Nayax

StarTek

Risk-Adjusted Performance

Very Weak

Over the last 90 days StarTek has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, StarTek is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Nayax

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nayax are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Nayax showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with StarTek and Nayax

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

The idea behind StarTek and Nayax 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.