Correlation Between Splitit Payments and Visium Technologies

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

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

Diversification Opportunities for Splitit Payments and Visium Technologies

0.03

Correlation Coefficient

Splitit Payments  Visium Technologies

Significant diversification

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

Pair Corralation between Splitit Payments and Visium Technologies

Assuming the 90 days horizon Splitit Payments is expected to under-perform the Visium Technologies. In addition to that, Splitit Payments is 1.06 times more volatile than Visium Technologies. It trades about -0.13 of its total potential returns per unit of risk. Visium Technologies is currently generating about 0.07 per unit of volatility. If you would invest  0.28  in Visium Technologies on September 18, 2024 and sell it today you would earn a total of  0.02  from holding Visium Technologies or generate 7.14% return on investment over 90 days.

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

Splitit Payments  vs.  Visium Technologies

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.

Visium Technologies

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Visium Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Visium Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Splitit Payments and Visium Technologies

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

The idea behind Splitit Payments and Visium 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.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.