Correlation Between Pagaya Technologies and Glimpse

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

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

Diversification Opportunities for Pagaya Technologies and Glimpse

-0.48

Correlation Coefficient

Pagaya Technologies  Glimpse

Very good diversification

The 3 months correlation between Pagaya and Glimpse is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Pagaya Technologies Ltd and Glimpse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glimpse Group and Pagaya Technologies 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 Pagaya Technologies Ltd are associated (or correlated) with Glimpse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glimpse Group has no effect on the direction of Pagaya Technologies i.e., Pagaya Technologies and Glimpse go up and down completely randomly.

Pair Corralation between Pagaya Technologies and Glimpse

Assuming the 90 days horizon Pagaya Technologies Ltd is expected to under-perform the Glimpse. In addition to that, Pagaya Technologies is 1.73 times more volatile than Glimpse Group. It trades about -0.04 of its total potential returns per unit of risk. Glimpse Group is currently generating about 0.11 per unit of volatility. If you would invest  80.00  in Glimpse Group on September 12, 2024 and sell it today you would earn a total of  34.00  from holding Glimpse Group or generate 42.5% return on investment over 90 days.

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

Pagaya Technologies Ltd  vs.  Glimpse Group

Pagaya Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pagaya Technologies Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Glimpse Group

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Glimpse Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Glimpse reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pagaya Technologies and Glimpse

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

The idea behind Pagaya Technologies Ltd and Glimpse Group 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.