Correlation Between Paysafe and Brooks Automation

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

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

Diversification Opportunities for Paysafe and Brooks Automation

0.0

Correlation Coefficient

Paysafe  Brooks Automation

Pay attention - limited upside

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

Pair Corralation between Paysafe and Brooks Automation

If you would invest  1,465  in Paysafe on February 28, 2024 and sell it today you would earn a total of  385.00  from holding Paysafe or generate 26.28% return on investment over 90 days.

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

Paysafe  vs.  Brooks Automation

Paysafe

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Paysafe are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Paysafe exhibited solid returns over the last few months and may actually be approaching a breakup point.

Brooks Automation

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Paysafe and Brooks Automation

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

The idea behind Paysafe and Brooks Automation 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.