Correlation Between DubberLimited and EGain
Can any of the company-specific risk be diversified away by investing in both DubberLimited and EGain 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 DubberLimited and EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dubber Limited and eGain, you can compare the effects of market volatilities on DubberLimited and EGain 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 DubberLimited with a short position of EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of DubberLimited and EGain.
Diversification Opportunities for DubberLimited and EGain
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DubberLimited and EGain is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dubber Limited and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and DubberLimited 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 EGain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eGain has no effect on the direction of DubberLimited i.e., DubberLimited and EGain go up and down completely randomly.
Pair Corralation between DubberLimited and EGain
Assuming the 90 days horizon Dubber Limited is expected to generate 27.2 times more return on investment than EGain. However, DubberLimited is 27.2 times more volatile than eGain. It trades about 0.08 of its potential returns per unit of risk. eGain is currently generating about -0.03 per unit of risk. If you would invest 6.23 in Dubber Limited on August 29, 2024 and sell it today you would lose (3.23) from holding Dubber Limited or give up 51.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dubber Limited vs. eGain
Performance |
| Timeline |
| Dubber Limited |
| eGain |
DubberLimited and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DubberLimited and EGain
The main advantage of trading using opposite DubberLimited and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DubberLimited position performs unexpectedly, EGain 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 EGain will offset losses from the drop in EGain's long position.| DubberLimited vs. Intouch Insight | DubberLimited vs. Advanced Health Intelligence | DubberLimited vs. Adcore Inc | DubberLimited vs. ProStar Holdings |
| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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