Correlation Between VHAI and Paysign

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

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

Diversification Opportunities for VHAI and Paysign

0.25

Correlation Coefficient

VHAI  Paysign

Modest diversification

The 3 months correlation between VHAI and Paysign is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding VHAI and Paysign in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysign and VHAI 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 VHAI are associated (or correlated) with Paysign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysign has no effect on the direction of VHAI i.e., VHAI and Paysign go up and down completely randomly.

Pair Corralation between VHAI and Paysign

If you would invest  0.57  in VHAI on October 7, 2024 and sell it today you would earn a total of  0.00  from holding VHAI or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

VHAI  vs.  Paysign

VHAI

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days VHAI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly unfluctuating basic indicators, VHAI demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Paysign

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Paysign has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with VHAI and Paysign

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

The idea behind VHAI and Paysign 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.