Correlation Between Ilex Medical and Payment Financial

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

By analyzing existing cross correlation between Ilex Medical and Payment Financial Technologies, you can compare the effects of market volatilities on Ilex Medical and Payment Financial 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 Ilex Medical with a short position of Payment Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilex Medical and Payment Financial.

Diversification Opportunities for Ilex Medical and Payment Financial

0.23

Correlation Coefficient

Ilex Medical  Payment Financial

Modest diversification

The 3 months correlation between Ilex and Payment is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ilex Medical and Payment Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payment Financial and Ilex Medical 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 Ilex Medical are associated (or correlated) with Payment Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payment Financial has no effect on the direction of Ilex Medical i.e., Ilex Medical and Payment Financial go up and down completely randomly.

Pair Corralation between Ilex Medical and Payment Financial

Assuming the 90 days trading horizon Ilex Medical is expected to under-perform the Payment Financial. In addition to that, Ilex Medical is 1.59 times more volatile than Payment Financial Technologies. It trades about -0.01 of its total potential returns per unit of risk. Payment Financial Technologies is currently generating about 0.05 per unit of volatility. If you would invest  36,993  in Payment Financial Technologies on April 24, 2025 and sell it today you would earn a total of  1,017  from holding Payment Financial Technologies or generate 2.75% return on investment over 90 days.

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

Ilex Medical  vs.  Payment Financial Technologies

Ilex Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ilex Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Ilex Medical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Payment Financial

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Payment Financial Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Payment Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ilex Medical and Payment Financial

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

The idea behind Ilex Medical and Payment Financial 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.