Correlation Between EZCORP and Sezzle Common

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

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

Diversification Opportunities for EZCORP and Sezzle Common

-0.61

Correlation Coefficient

EZCORP  Sezzle Common

Excellent diversification

The 3 months correlation between EZCORP and Sezzle is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding EZCORP Inc and Sezzle Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sezzle Common Stock and EZCORP 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 EZCORP Inc are associated (or correlated) with Sezzle Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sezzle Common Stock has no effect on the direction of EZCORP i.e., EZCORP and Sezzle Common go up and down completely randomly.

Pair Corralation between EZCORP and Sezzle Common

Given the investment horizon of 90 days EZCORP is expected to generate 68.64 times less return on investment than Sezzle Common. But when comparing it to its historical volatility, EZCORP Inc is 3.55 times less risky than Sezzle Common. It trades about 0.01 of its potential returns per unit of risk. Sezzle Common Stock is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  5,275  in Sezzle Common Stock on May 7, 2025 and sell it today you would earn a total of  10,424  from holding Sezzle Common Stock or generate 197.61% return on investment over 90 days.

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

EZCORP Inc  vs.  Sezzle Common Stock

EZCORP Inc

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in EZCORP Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, EZCORP is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Sezzle Common Stock

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sezzle Common Stock are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Sezzle Common disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EZCORP and Sezzle Common

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

The idea behind EZCORP Inc and Sezzle Common Stock 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.