Correlation Between Grab Holdings and Dave Warrants
Can any of the company-specific risk be diversified away by investing in both Grab Holdings 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 Grab Holdings and Dave Warrants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grab Holdings Limited and Dave Warrants, you can compare the effects of market volatilities on Grab Holdings 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 Grab Holdings with a short position of Dave Warrants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grab Holdings and Dave Warrants.
Diversification Opportunities for Grab Holdings and Dave Warrants
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grab and Dave is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Grab Holdings Limited and Dave Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dave Warrants and Grab Holdings 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 Grab Holdings Limited 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 Grab Holdings i.e., Grab Holdings and Dave Warrants go up and down completely randomly.
Pair Corralation between Grab Holdings and Dave Warrants
Assuming the 90 days horizon Grab Holdings is expected to generate 6.26 times less return on investment than Dave Warrants. But when comparing it to its historical volatility, Grab Holdings Limited is 2.37 times less risky than Dave Warrants. It trades about 0.03 of its potential returns per unit of risk. Dave Warrants is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3.99 in Dave Warrants on August 30, 2024 and sell it today you would earn a total of 12.01 from holding Dave Warrants or generate 301.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.37% |
| Values | Daily Returns |
Grab Holdings Limited vs. Dave Warrants
Performance |
| Timeline |
| Grab Holdings Limited |
| Dave Warrants |
Grab Holdings and Dave Warrants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grab Holdings and Dave Warrants
The main advantage of trading using opposite Grab Holdings and Dave Warrants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grab Holdings 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.| Grab Holdings vs. Grab Holdings | Grab Holdings vs. EVgo Equity Warrants | Grab Holdings vs. Bakkt Holdings Warrant |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Correlations Find global opportunities by holding instruments from different markets |