Correlation Between Yext and Repay Holdings

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

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

Diversification Opportunities for Yext and Repay Holdings

-0.26

Correlation Coefficient

Yext  Repay Holdings

Very good diversification

The 3 months correlation between Yext and Repay is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Yext Inc and Repay Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repay Holdings Corp and Yext 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 Yext Inc are associated (or correlated) with Repay Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repay Holdings Corp has no effect on the direction of Yext i.e., Yext and Repay Holdings go up and down completely randomly.

Pair Corralation between Yext and Repay Holdings

Given the investment horizon of 90 days Yext Inc is expected to under-perform the Repay Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Yext Inc is 1.05 times less risky than Repay Holdings. The stock trades about -0.01 of its potential returns per unit of risk. The Repay Holdings Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  807.00  in Repay Holdings Corp on February 18, 2024 and sell it today you would earn a total of  211.00  from holding Repay Holdings Corp or generate 26.15% return on investment over 90 days.

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

Yext Inc  vs.  Repay Holdings Corp

Yext Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yext Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Yext is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Repay Holdings Corp

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Repay Holdings Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Repay Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Yext and Repay Holdings

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

The idea behind Yext Inc and Repay Holdings Corp 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.