Correlation Between Dubber and BASE
Can any of the company-specific risk be diversified away by investing in both Dubber and BASE 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 Dubber and BASE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dubber Limited and BASE Inc, you can compare the effects of market volatilities on Dubber and BASE 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 Dubber with a short position of BASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dubber and BASE.
Diversification Opportunities for Dubber and BASE
Good diversification
The 3 months correlation between Dubber and BASE is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Dubber Limited and BASE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASE Inc and Dubber 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 Dubber Limited are associated (or correlated) with BASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BASE Inc has no effect on the direction of Dubber i.e., Dubber and BASE go up and down completely randomly.
Pair Corralation between Dubber and BASE
If you would invest 193.00 in BASE Inc on October 20, 2024 and sell it today you would earn a total of 6.00 from holding BASE Inc or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dubber Limited vs. BASE Inc
Performance |
| Timeline |
| Dubber Limited |
| BASE Inc |
Dubber and BASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dubber and BASE
The main advantage of trading using opposite Dubber and BASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dubber position performs unexpectedly, BASE 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 BASE will offset losses from the drop in BASE's long position.| Dubber vs. Intouch Insight | Dubber vs. Advanced Health Intelligence | Dubber vs. Adcore Inc | Dubber vs. ProStar Holdings |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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