Correlation Between AppYea and Bumble
Can any of the company-specific risk be diversified away by investing in both AppYea and Bumble 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 AppYea and Bumble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AppYea Inc and Bumble Inc, you can compare the effects of market volatilities on AppYea and Bumble 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 AppYea with a short position of Bumble. Check out your portfolio center. Please also check ongoing floating volatility patterns of AppYea and Bumble.
Diversification Opportunities for AppYea and Bumble
Poor diversification
The 3 months correlation between AppYea and Bumble is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding AppYea Inc and Bumble Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumble Inc and AppYea 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 AppYea Inc are associated (or correlated) with Bumble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bumble Inc has no effect on the direction of AppYea i.e., AppYea and Bumble go up and down completely randomly.
Pair Corralation between AppYea and Bumble
Given the investment horizon of 90 days AppYea Inc is expected to generate 3.32 times more return on investment than Bumble. However, AppYea is 3.32 times more volatile than Bumble Inc. It trades about -0.01 of its potential returns per unit of risk. Bumble Inc is currently generating about -0.05 per unit of risk. If you would invest 1.44 in AppYea Inc on October 23, 2024 and sell it today you would lose (0.12) from holding AppYea Inc or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
AppYea Inc vs. Bumble Inc
Performance |
| Timeline |
| AppYea Inc |
| Bumble Inc |
AppYea and Bumble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AppYea and Bumble
The main advantage of trading using opposite AppYea and Bumble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AppYea position performs unexpectedly, Bumble 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 Bumble will offset losses from the drop in Bumble's long position.| AppYea vs. AB International Group | AppYea vs. Peer To Peer | AppYea vs. Image Protect | AppYea vs. Bowmo Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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