Correlation Between Shift4 Payments and Oneconnect Financial
Can any of the company-specific risk be diversified away by investing in both Shift4 Payments and Oneconnect Financial 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 Shift4 Payments and Oneconnect Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shift4 Payments and Oneconnect Financial Technology, you can compare the effects of market volatilities on Shift4 Payments and Oneconnect Financial 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 Shift4 Payments with a short position of Oneconnect Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shift4 Payments and Oneconnect Financial.
Diversification Opportunities for Shift4 Payments and Oneconnect Financial
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shift4 and Oneconnect is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shift4 Payments and Oneconnect Financial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneconnect Financial and Shift4 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 Shift4 Payments are associated (or correlated) with Oneconnect Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneconnect Financial has no effect on the direction of Shift4 Payments i.e., Shift4 Payments and Oneconnect Financial go up and down completely randomly.
Pair Corralation between Shift4 Payments and Oneconnect Financial
Given the investment horizon of 90 days Shift4 Payments is expected to generate 0.41 times more return on investment than Oneconnect Financial. However, Shift4 Payments is 2.44 times less risky than Oneconnect Financial. It trades about 0.07 of its potential returns per unit of risk. Oneconnect Financial Technology is currently generating about 0.02 per unit of risk. If you would invest 6,459 in Shift4 Payments on September 14, 2024 and sell it today you would earn a total of 3,726 from holding Shift4 Payments or generate 57.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shift4 Payments vs. Oneconnect Financial Technolog
Performance |
Timeline |
Shift4 Payments |
Oneconnect Financial |
Shift4 Payments and Oneconnect Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shift4 Payments and Oneconnect Financial
The main advantage of trading using opposite Shift4 Payments and Oneconnect Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shift4 Payments position performs unexpectedly, Oneconnect Financial 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 Oneconnect Financial will offset losses from the drop in Oneconnect Financial's long position.Shift4 Payments vs. Oneconnect Financial Technology | Shift4 Payments vs. Global Business Travel | Shift4 Payments vs. Alight Inc | Shift4 Payments vs. CS Disco LLC |
Oneconnect Financial vs. Trust Stamp | Oneconnect Financial vs. Amesite Operating Co | Oneconnect Financial vs. My Size | Oneconnect Financial vs. Kingsoft Cloud Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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