Correlation Between PayPal Holdings and Boom Logistics
Can any of the company-specific risk be diversified away by investing in both PayPal Holdings and Boom Logistics 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 PayPal Holdings and Boom Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PayPal Holdings and Boom Logistics, you can compare the effects of market volatilities on PayPal Holdings and Boom Logistics 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 PayPal Holdings with a short position of Boom Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and Boom Logistics.
Diversification Opportunities for PayPal Holdings and Boom Logistics
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PayPal and Boom is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and Boom Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boom Logistics and PayPal 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 PayPal Holdings are associated (or correlated) with Boom Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boom Logistics has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and Boom Logistics go up and down completely randomly.
Pair Corralation between PayPal Holdings and Boom Logistics
Given the investment horizon of 90 days PayPal Holdings is expected to under-perform the Boom Logistics. In addition to that, PayPal Holdings is 1.35 times more volatile than Boom Logistics. It trades about -0.05 of its total potential returns per unit of risk. Boom Logistics is currently generating about 0.22 per unit of volatility. If you would invest 131.00 in Boom Logistics on September 11, 2025 and sell it today you would earn a total of 34.00 from holding Boom Logistics or generate 25.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PayPal Holdings vs. Boom Logistics
Performance |
| Timeline |
| PayPal Holdings |
| Boom Logistics |
PayPal Holdings and Boom Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PayPal Holdings and Boom Logistics
The main advantage of trading using opposite PayPal Holdings and Boom Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings position performs unexpectedly, Boom Logistics 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 Boom Logistics will offset losses from the drop in Boom Logistics' long position.| PayPal Holdings vs. Sumitomo Mitsui Financial | PayPal Holdings vs. Wells Fargo | PayPal Holdings vs. Deutsche Bank AG | PayPal Holdings vs. The Travelers Companies |
| Boom Logistics vs. Income Asset Management | Boom Logistics vs. Greentech Metals | Boom Logistics vs. Stelar Metals | Boom Logistics vs. Centaurus Metals |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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