Correlation Between Repay Holdings and Network 1

Can any of the company-specific risk be diversified away by investing in both Repay Holdings and Network 1 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 Repay Holdings and Network 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Repay Holdings Corp and Network 1 Technologies, you can compare the effects of market volatilities on Repay Holdings and Network 1 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 Repay Holdings with a short position of Network 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repay Holdings and Network 1.

Diversification Opportunities for Repay Holdings and Network 1

0.0

Correlation Coefficient

Repay Holdings  Network 1

Pay attention - limited upside

The 3 months correlation between Repay and Network is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Repay Holdings Corp and Network 1 Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network 1 Technologies and Repay 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 Repay Holdings Corp are associated (or correlated) with Network 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network 1 Technologies has no effect on the direction of Repay Holdings i.e., Repay Holdings and Network 1 go up and down completely randomly.

Pair Corralation between Repay Holdings and Network 1

Given the investment horizon of 90 days Repay Holdings Corp is expected to generate 1.15 times more return on investment than Network 1. However, Repay Holdings is 1.15 times more volatile than Network 1 Technologies. It trades about 0.01 of its potential returns per unit of risk. Network 1 Technologies is currently generating about -0.02 per unit of risk. If you would invest  844.00  in Repay Holdings Corp on September 29, 2024 and sell it today you would lose (57.00) from holding Repay Holdings Corp or give up 6.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Repay Holdings Corp  vs.  Network 1 Technologies

Repay Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Repay Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Repay Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Network 1 Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Network 1 Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, Network 1 is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Repay Holdings and Network 1

The main advantage of trading using opposite Repay Holdings and Network 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repay Holdings position performs unexpectedly, Network 1 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 Network 1 will offset losses from the drop in Network 1's long position.

The idea behind Repay Holdings Corp and Network 1 Technologies 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.