Correlation Between EGain and DubberLimited
Can any of the company-specific risk be diversified away by investing in both EGain and DubberLimited 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 EGain and DubberLimited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eGain and Dubber Limited, you can compare the effects of market volatilities on EGain and DubberLimited 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 EGain with a short position of DubberLimited. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGain and DubberLimited.
Diversification Opportunities for EGain and DubberLimited
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EGain and DubberLimited is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding eGain and Dubber Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dubber Limited and EGain 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 eGain are associated (or correlated) with DubberLimited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dubber Limited has no effect on the direction of EGain i.e., EGain and DubberLimited go up and down completely randomly.
Pair Corralation between EGain and DubberLimited
Given the investment horizon of 90 days eGain is expected to under-perform the DubberLimited. But the stock apears to be less risky and, when comparing its historical volatility, eGain is 15.79 times less risky than DubberLimited. The stock trades about -0.02 of its potential returns per unit of risk. The Dubber Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Dubber Limited on August 29, 2024 and sell it today you would lose (25.00) from holding Dubber Limited or give up 89.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
eGain vs. Dubber Limited
Performance |
| Timeline |
| eGain |
| Dubber Limited |
EGain and DubberLimited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGain and DubberLimited
The main advantage of trading using opposite EGain and DubberLimited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGain position performs unexpectedly, DubberLimited 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 DubberLimited will offset losses from the drop in DubberLimited's long position.| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
| DubberLimited vs. Intouch Insight | DubberLimited vs. Advanced Health Intelligence | DubberLimited vs. Adcore Inc | DubberLimited vs. ProStar Holdings |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |