Correlation Between Liquid Avatar and BASE
Can any of the company-specific risk be diversified away by investing in both Liquid Avatar 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 Liquid Avatar and BASE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liquid Avatar Technologies and BASE Inc, you can compare the effects of market volatilities on Liquid Avatar 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 Liquid Avatar with a short position of BASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liquid Avatar and BASE.
Diversification Opportunities for Liquid Avatar and BASE
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liquid and BASE is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Liquid Avatar Technologies and BASE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASE Inc and Liquid Avatar 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 Liquid Avatar Technologies 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 Liquid Avatar i.e., Liquid Avatar and BASE go up and down completely randomly.
Pair Corralation between Liquid Avatar and BASE
If you would invest 150.00 in BASE Inc on September 23, 2024 and sell it today you would earn a total of 43.00 from holding BASE Inc or generate 28.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Liquid Avatar Technologies vs. BASE Inc
Performance |
| Timeline |
| Liquid Avatar Techno |
| BASE Inc |
Liquid Avatar and BASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liquid Avatar and BASE
The main advantage of trading using opposite Liquid Avatar and BASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liquid Avatar 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.| Liquid Avatar vs. NextPlat Corp | Liquid Avatar vs. Wirecard AG | Liquid Avatar vs. Waldencast Acquisition Corp | Liquid Avatar vs. CXApp Inc |
| BASE vs. NextPlat Corp | BASE vs. Liquid Avatar Technologies | BASE vs. Wirecard AG | BASE vs. Waldencast Acquisition Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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