Correlation Between PayPal Holdings and Shanxi Xishan
Specify exactly 2 symbols:
By analyzing existing cross correlation between PayPal Holdings and Shanxi Xishan Coal, you can compare the effects of market volatilities on PayPal Holdings and Shanxi Xishan 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 PayPal Holdings with a short position of Shanxi Xishan. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and Shanxi Xishan.
Diversification Opportunities for PayPal Holdings and Shanxi Xishan
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PayPal and Shanxi is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and Shanxi Xishan Coal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Xishan Coal and PayPal Holdings 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 PayPal Holdings are associated (or correlated) with Shanxi Xishan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Xishan Coal has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and Shanxi Xishan go up and down completely randomly.
Pair Corralation between PayPal Holdings and Shanxi Xishan
Given the investment horizon of 90 days PayPal Holdings is expected to generate 0.72 times more return on investment than Shanxi Xishan. However, PayPal Holdings is 1.39 times less risky than Shanxi Xishan. It trades about 0.22 of its potential returns per unit of risk. Shanxi Xishan Coal is currently generating about 0.11 per unit of risk. If you would invest 7,036 in PayPal Holdings on September 12, 2024 and sell it today you would earn a total of 2,037 from holding PayPal Holdings or generate 28.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 89.06% |
Values | Daily Returns |
PayPal Holdings vs. Shanxi Xishan Coal
Performance |
Timeline |
PayPal Holdings |
Shanxi Xishan Coal |
PayPal Holdings and Shanxi Xishan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PayPal Holdings and Shanxi Xishan
The main advantage of trading using opposite PayPal Holdings and Shanxi Xishan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings position performs unexpectedly, Shanxi Xishan 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 Shanxi Xishan will offset losses from the drop in Shanxi Xishan's long position.PayPal Holdings vs. American Express | PayPal Holdings vs. Capital One Financial | PayPal Holdings vs. Upstart Holdings | PayPal Holdings vs. Ally Financial |
Shanxi Xishan vs. Jiangsu Yanghe Brewery | Shanxi Xishan vs. Shanghai Construction Group | Shanxi Xishan vs. Nanxing Furniture Machinery | Shanxi Xishan vs. Shantui Construction Machinery |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |