Correlation Between Taboola and Payoneer Global

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

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

Diversification Opportunities for Taboola and Payoneer Global

0.72

Correlation Coefficient

Taboola  Payoneer Global

Poor diversification

The 3 months correlation between Taboola and Payoneer is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Taboola Ltd Warrant and Payoneer Global Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payoneer Global Warrant and Taboola 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 Taboola Ltd Warrant are associated (or correlated) with Payoneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payoneer Global Warrant has no effect on the direction of Taboola i.e., Taboola and Payoneer Global go up and down completely randomly.

Pair Corralation between Taboola and Payoneer Global

Assuming the 90 days horizon Taboola Ltd Warrant is expected to generate 5.8 times more return on investment than Payoneer Global. However, Taboola is 5.8 times more volatile than Payoneer Global Warrant. It trades about 0.13 of its potential returns per unit of risk. Payoneer Global Warrant is currently generating about -0.11 per unit of risk. If you would invest  11.00  in Taboola Ltd Warrant on September 3, 2024 and sell it today you would earn a total of  8.00  from holding Taboola Ltd Warrant or generate 72.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	28.33%
Values	Daily Returns

Taboola Ltd Warrant  vs.  Payoneer Global Warrant

Taboola Warrant

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Taboola Ltd Warrant are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Taboola showed solid returns over the last few months and may actually be approaching a breakup point.

Payoneer Global Warrant

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Payoneer Global Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating 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.

Pair Trading with Taboola and Payoneer Global

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

The idea behind Taboola Ltd Warrant and Payoneer Global Warrant 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.