Correlation Between PagSeguro Digital and Nutanix

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

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

Diversification Opportunities for PagSeguro Digital and Nutanix

0.15

Correlation Coefficient

PagSeguro Digital  Nutanix

Average diversification

The 3 months correlation between PagSeguro and Nutanix is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PagSeguro Digital and Nutanix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutanix and PagSeguro Digital 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 PagSeguro Digital are associated (or correlated) with Nutanix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutanix has no effect on the direction of PagSeguro Digital i.e., PagSeguro Digital and Nutanix go up and down completely randomly.

Pair Corralation between PagSeguro Digital and Nutanix

Given the investment horizon of 90 days PagSeguro Digital is expected to under-perform the Nutanix. In addition to that, PagSeguro Digital is 1.84 times more volatile than Nutanix. It trades about -0.05 of its total potential returns per unit of risk. Nutanix is currently generating about 0.0 per unit of volatility. If you would invest  7,370  in Nutanix on May 7, 2025 and sell it today you would lose (40.00) from holding Nutanix or give up 0.54% of portfolio value over 90 days.

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

PagSeguro Digital  vs.  Nutanix

PagSeguro Digital

Risk-Adjusted Performance

Weakest

Over the last 90 days PagSeguro Digital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Nutanix

Risk-Adjusted Performance

Weakest

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

Pair Trading with PagSeguro Digital and Nutanix

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

The idea behind PagSeguro Digital and Nutanix 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.