Correlation Between Repay Holdings and Bandwidth

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

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

Diversification Opportunities for Repay Holdings and Bandwidth

0.04

Correlation Coefficient

Repay Holdings  Bandwidth

Significant diversification

The 3 months correlation between Repay and Bandwidth is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Repay Holdings Corp and Bandwidth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bandwidth and Repay Holdings 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 Repay Holdings Corp are associated (or correlated) with Bandwidth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bandwidth has no effect on the direction of Repay Holdings i.e., Repay Holdings and Bandwidth go up and down completely randomly.

Pair Corralation between Repay Holdings and Bandwidth

Given the investment horizon of 90 days Repay Holdings is expected to generate 8.86 times less return on investment than Bandwidth. In addition to that, Repay Holdings is 1.13 times more volatile than Bandwidth. It trades about 0.01 of its total potential returns per unit of risk. Bandwidth is currently generating about 0.14 per unit of volatility. If you would invest  1,321  in Bandwidth on July 29, 2025 and sell it today you would earn a total of  350.00  from holding Bandwidth or generate 26.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Repay Holdings Corp  vs.  Bandwidth

Repay Holdings Corp

Risk-Adjusted Performance

Weak

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

Bandwidth

Risk-Adjusted Performance

Good

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

Pair Trading with Repay Holdings and Bandwidth

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

The idea behind Repay Holdings Corp and Bandwidth 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.