Correlation Between Euronet Worldwide and Interface

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

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

Diversification Opportunities for Euronet Worldwide and Interface

-0.69

Correlation Coefficient

Euronet Worldwide  Interface

Excellent diversification

The 3 months correlation between Euronet and Interface is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Euronet Worldwide and Interface in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interface and Euronet Worldwide 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 Euronet Worldwide are associated (or correlated) with Interface. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interface has no effect on the direction of Euronet Worldwide i.e., Euronet Worldwide and Interface go up and down completely randomly.

Pair Corralation between Euronet Worldwide and Interface

Given the investment horizon of 90 days Euronet Worldwide is expected to under-perform the Interface. But the stock apears to be less risky and, when comparing its historical volatility, Euronet Worldwide is 1.72 times less risky than Interface. The stock trades about -0.12 of its potential returns per unit of risk. The Interface is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  2,075  in Interface on May 19, 2025 and sell it today you would earn a total of  587.00  from holding Interface or generate 28.29% return on investment over 90 days.

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

Euronet Worldwide  vs.  Interface

Euronet Worldwide

Risk-Adjusted Performance

Weakest

Over the last 90 days Euronet Worldwide has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Interface

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Interface are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting essential indicators, Interface exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Euronet Worldwide and Interface

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

The idea behind Euronet Worldwide and Interface 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 Stocks Directory module to find actively traded stocks across global markets.