Correlation Between Payoneer Global and Pinterest

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

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

Diversification Opportunities for Payoneer Global and Pinterest

-0.69

Correlation Coefficient

Payoneer Global  Pinterest

Excellent diversification

The 3 months correlation between Payoneer and Pinterest is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Payoneer Global and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest and Payoneer Global 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 Payoneer Global are associated (or correlated) with Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of Payoneer Global i.e., Payoneer Global and Pinterest go up and down completely randomly.

Pair Corralation between Payoneer Global and Pinterest

Given the investment horizon of 90 days Payoneer Global is expected to generate 1.2 times more return on investment than Pinterest. However, Payoneer Global is 1.2 times more volatile than Pinterest. It trades about 0.16 of its potential returns per unit of risk. Pinterest is currently generating about -0.04 per unit of risk. If you would invest  753.00  in Payoneer Global on September 30, 2024 and sell it today you would earn a total of  248.00  from holding Payoneer Global or generate 32.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Payoneer Global  vs.  Pinterest

Payoneer Global

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Payoneer Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Payoneer Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pinterest

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pinterest has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Payoneer Global and Pinterest

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

The idea behind Payoneer Global and Pinterest 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.