Correlation Between Accord Financial and PayPal Holdings
Can any of the company-specific risk be diversified away by investing in both Accord Financial and PayPal Holdings 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 Accord Financial and PayPal Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accord Financial Corp and PayPal Holdings, you can compare the effects of market volatilities on Accord Financial and PayPal Holdings 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 Accord Financial with a short position of PayPal Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accord Financial and PayPal Holdings.
Diversification Opportunities for Accord Financial and PayPal Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Accord and PayPal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Accord Financial Corp and PayPal Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PayPal Holdings and Accord Financial 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 Accord Financial Corp are associated (or correlated) with PayPal Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PayPal Holdings has no effect on the direction of Accord Financial i.e., Accord Financial and PayPal Holdings go up and down completely randomly.
Pair Corralation between Accord Financial and PayPal Holdings
If you would invest 485.00 in Accord Financial Corp on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Accord Financial Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Accord Financial Corp vs. PayPal Holdings
Performance |
Timeline |
Accord Financial Corp |
PayPal Holdings |
Accord Financial and PayPal Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Accord Financial and PayPal Holdings
The main advantage of trading using opposite Accord Financial and PayPal Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accord Financial position performs unexpectedly, PayPal Holdings 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 PayPal Holdings will offset losses from the drop in PayPal Holdings' long position.Accord Financial vs. Stevia Nutra Corp | Accord Financial vs. Regent Ventures | Accord Financial vs. Element Global | Accord Financial vs. Affiliated Resources Corp |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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