Correlation Between BASE and LifeSpeak
Can any of the company-specific risk be diversified away by investing in both BASE and LifeSpeak 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 BASE and LifeSpeak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BASE Inc and LifeSpeak, you can compare the effects of market volatilities on BASE and LifeSpeak 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 BASE with a short position of LifeSpeak. Check out your portfolio center. Please also check ongoing floating volatility patterns of BASE and LifeSpeak.
Diversification Opportunities for BASE and LifeSpeak
Excellent diversification
The 3 months correlation between BASE and LifeSpeak is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding BASE Inc and LifeSpeak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeSpeak and BASE 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 BASE Inc are associated (or correlated) with LifeSpeak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeSpeak has no effect on the direction of BASE i.e., BASE and LifeSpeak go up and down completely randomly.
Pair Corralation between BASE and LifeSpeak
If you would invest 29.00 in LifeSpeak on November 2, 2024 and sell it today you would earn a total of 0.00 from holding LifeSpeak or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
BASE Inc vs. LifeSpeak
Performance |
| Timeline |
| BASE Inc |
| LifeSpeak |
BASE and LifeSpeak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BASE and LifeSpeak
The main advantage of trading using opposite BASE and LifeSpeak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BASE position performs unexpectedly, LifeSpeak 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 LifeSpeak will offset losses from the drop in LifeSpeak's long position.| BASE vs. CurrentC Power | BASE vs. Agent Information Software | BASE vs. Auddia Inc | BASE vs. Maxwell Resource |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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