Correlation Between Cellebrite and Dave Warrants

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Cellebrite and Dave Warrants 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 Cellebrite and Dave Warrants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellebrite DI Equity and Dave Warrants, you can compare the effects of market volatilities on Cellebrite and Dave Warrants 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 Cellebrite with a short position of Dave Warrants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellebrite and Dave Warrants.

Diversification Opportunities for Cellebrite and Dave Warrants

0.47
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Cellebrite and Dave is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cellebrite DI Equity and Dave Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dave Warrants and Cellebrite 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 Cellebrite DI Equity are associated (or correlated) with Dave Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dave Warrants has no effect on the direction of Cellebrite i.e., Cellebrite and Dave Warrants go up and down completely randomly.

Pair Corralation between Cellebrite and Dave Warrants

Assuming the 90 days horizon Cellebrite is expected to generate 1.75 times less return on investment than Dave Warrants. But when comparing it to its historical volatility, Cellebrite DI Equity is 3.54 times less risky than Dave Warrants. It trades about 0.24 of its potential returns per unit of risk. Dave Warrants is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  3.62  in Dave Warrants on August 28, 2024 and sell it today you would earn a total of  10.38  from holding Dave Warrants or generate 286.74% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy62.81%
ValuesDaily Returns

Cellebrite DI Equity  vs.  Dave Warrants

 Performance 
       Timeline  
Cellebrite DI Equity 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Cellebrite DI Equity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in December 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
Dave Warrants 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Dave Warrants are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical and fundamental indicators, Dave Warrants showed solid returns over the last few months and may actually be approaching a breakup point.

Cellebrite and Dave Warrants Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cellebrite and Dave Warrants

The main advantage of trading using opposite Cellebrite and Dave Warrants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellebrite position performs unexpectedly, Dave Warrants 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 Dave Warrants will offset losses from the drop in Dave Warrants' long position.
The idea behind Cellebrite DI Equity and Dave Warrants 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.
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

Other Complementary Tools

FinTech Suite
Use AI to screen and filter profitable investment opportunities
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Share Portfolio
Track or share privately all of your investments from the convenience of any device