Correlation Between Splitit Payments and Tego Cyber

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

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

Diversification Opportunities for Splitit Payments and Tego Cyber

0.03

Correlation Coefficient

Splitit Payments  Tego Cyber

Significant diversification

The 3 months correlation between Splitit and Tego is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Splitit Payments and Tego Cyber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tego Cyber and Splitit Payments 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 Splitit Payments are associated (or correlated) with Tego Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tego Cyber has no effect on the direction of Splitit Payments i.e., Splitit Payments and Tego Cyber go up and down completely randomly.

Pair Corralation between Splitit Payments and Tego Cyber

If you would invest  9.79  in Tego Cyber on September 22, 2024 and sell it today you would lose (1.79) from holding Tego Cyber or give up 18.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.56%
Values	Daily Returns

Splitit Payments  vs.  Tego Cyber

Splitit Payments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Splitit Payments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Tego Cyber

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tego Cyber are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Tego Cyber sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Splitit Payments and Tego Cyber

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

The idea behind Splitit Payments and Tego Cyber 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.