Correlation Between Paymentus Holdings and Ambarella
Can any of the company-specific risk be diversified away by investing in both Paymentus Holdings and Ambarella 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 Paymentus Holdings and Ambarella into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paymentus Holdings and Ambarella, you can compare the effects of market volatilities on Paymentus Holdings and Ambarella 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 Paymentus Holdings with a short position of Ambarella. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paymentus Holdings and Ambarella.
Diversification Opportunities for Paymentus Holdings and Ambarella
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Paymentus and Ambarella is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Paymentus Holdings and Ambarella in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambarella and Paymentus 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 Paymentus Holdings are associated (or correlated) with Ambarella. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambarella has no effect on the direction of Paymentus Holdings i.e., Paymentus Holdings and Ambarella go up and down completely randomly.
Pair Corralation between Paymentus Holdings and Ambarella
Considering the 90-day investment horizon Paymentus Holdings is expected to under-perform the Ambarella. In addition to that, Paymentus Holdings is 1.27 times more volatile than Ambarella. It trades about -0.21 of its total potential returns per unit of risk. Ambarella is currently generating about 0.11 per unit of volatility. If you would invest 7,669 in Ambarella on October 9, 2025 and sell it today you would earn a total of 395.00 from holding Ambarella or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paymentus Holdings vs. Ambarella
Performance |
| Timeline |
| Paymentus Holdings |
| Ambarella |
Paymentus Holdings and Ambarella Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paymentus Holdings and Ambarella
The main advantage of trading using opposite Paymentus Holdings and Ambarella positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paymentus Holdings position performs unexpectedly, Ambarella 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 Ambarella will offset losses from the drop in Ambarella's long position.| Paymentus Holdings vs. Verra Mobility Corp | Paymentus Holdings vs. NIQ Global Intelligence | Paymentus Holdings vs. Blackline | Paymentus Holdings vs. Science Applications International |
| Ambarella vs. IPG Photonics | Ambarella vs. Silicon Laboratories | Ambarella vs. Silicon Motion Technology | Ambarella vs. Synaptics Incorporated |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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