Correlation Between Sharing Economy and Splitit Payments

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

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

Diversification Opportunities for Sharing Economy and Splitit Payments

0.0

Correlation Coefficient

Sharing Economy  Splitit Payments

Pay attention - limited upside

The 3 months correlation between Sharing and Splitit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sharing Economy International and Splitit Payments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Splitit Payments and Sharing Economy 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 Sharing Economy International are associated (or correlated) with Splitit Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Splitit Payments has no effect on the direction of Sharing Economy i.e., Sharing Economy and Splitit Payments go up and down completely randomly.

Pair Corralation between Sharing Economy and Splitit Payments

If you would invest  2.00  in Splitit Payments on May 3, 2025 and sell it today you would lose (1.99) from holding Splitit Payments or give up 99.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sharing Economy International  vs.  Splitit Payments

Sharing Economy Inte

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sharing Economy International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Sharing Economy is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Splitit Payments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Splitit Payments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Splitit Payments is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Sharing Economy and Splitit Payments

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

The idea behind Sharing Economy International and Splitit Payments 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.