Correlation Between Payoneer Global and CBAAU

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

By analyzing existing cross correlation between Payoneer Global and CBAAU 4899236 07 JUL 25, you can compare the effects of market volatilities on Payoneer Global and CBAAU 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 CBAAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payoneer Global and CBAAU.

Diversification Opportunities for Payoneer Global and CBAAU

0.3

Correlation Coefficient

Payoneer Global  CBAAU

Weak diversification

The 3 months correlation between Payoneer and CBAAU is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Payoneer Global and CBAAU 4899236 07 JUL 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBAAU 4899236 07 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 CBAAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBAAU 4899236 07 has no effect on the direction of Payoneer Global i.e., Payoneer Global and CBAAU go up and down completely randomly.

Pair Corralation between Payoneer Global and CBAAU

Given the investment horizon of 90 days Payoneer Global is expected to generate 34.04 times more return on investment than CBAAU. However, Payoneer Global is 34.04 times more volatile than CBAAU 4899236 07 JUL 25. It trades about 0.19 of its potential returns per unit of risk. CBAAU 4899236 07 JUL 25 is currently generating about 0.03 per unit of risk. If you would invest  738.00  in Payoneer Global on September 13, 2024 and sell it today you would earn a total of  298.00  from holding Payoneer Global or generate 40.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	38.1%
Values	Daily Returns

Payoneer Global  vs.  CBAAU 4899236 07 JUL 25

Payoneer Global

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Payoneer Global are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Payoneer Global displayed solid returns over the last few months and may actually be approaching a breakup point.

CBAAU 4899236 07

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CBAAU 4899236 07 JUL 25 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, CBAAU is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Payoneer Global and CBAAU

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

The idea behind Payoneer Global and CBAAU 4899236 07 JUL 25 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.