Correlation Between Splitit Payments and Plyzer Technologies

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

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

Diversification Opportunities for Splitit Payments and Plyzer Technologies

0.2

Correlation Coefficient

Splitit Payments  Plyzer Technologies

Modest diversification

The 3 months correlation between Splitit and Plyzer is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Splitit Payments and Plyzer Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plyzer Technologies and Splitit Payments 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 Splitit Payments are associated (or correlated) with Plyzer Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plyzer Technologies has no effect on the direction of Splitit Payments i.e., Splitit Payments and Plyzer Technologies go up and down completely randomly.

Pair Corralation between Splitit Payments and Plyzer Technologies

Assuming the 90 days horizon Splitit Payments is expected to generate 1.03 times more return on investment than Plyzer Technologies. However, Splitit Payments is 1.03 times more volatile than Plyzer Technologies. It trades about 0.06 of its potential returns per unit of risk. Plyzer Technologies is currently generating about 0.05 per unit of risk. If you would invest  8.40  in Splitit Payments on February 26, 2024 and sell it today you would lose (8.40) from holding Splitit Payments or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.74%
Values	Daily Returns

Splitit Payments  vs.  Plyzer Technologies

Splitit Payments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Splitit Payments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Plyzer Technologies

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Plyzer Technologies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Plyzer Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Splitit Payments and Plyzer Technologies

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

The idea behind Splitit Payments and Plyzer Technologies 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.