Correlation Between ProStar Holdings and Dubber
Can any of the company-specific risk be diversified away by investing in both ProStar Holdings and Dubber 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 ProStar Holdings and Dubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProStar Holdings and Dubber Limited, you can compare the effects of market volatilities on ProStar Holdings and Dubber 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 ProStar Holdings with a short position of Dubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProStar Holdings and Dubber.
Diversification Opportunities for ProStar Holdings and Dubber
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between ProStar and Dubber is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding ProStar Holdings and Dubber Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dubber Limited and ProStar 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 ProStar Holdings are associated (or correlated) with Dubber. 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 ProStar Holdings i.e., ProStar Holdings and Dubber go up and down completely randomly.
Pair Corralation between ProStar Holdings and Dubber
Assuming the 90 days horizon ProStar Holdings is expected to under-perform the Dubber. But the otc stock apears to be less risky and, when comparing its historical volatility, ProStar Holdings is 7.69 times less risky than Dubber. The otc stock trades about -0.01 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 17.00 in Dubber Limited on September 12, 2024 and sell it today you would lose (14.50) from holding Dubber Limited or give up 85.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProStar Holdings vs. Dubber Limited
Performance |
| Timeline |
| ProStar Holdings |
| Dubber Limited |
ProStar Holdings and Dubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProStar Holdings and Dubber
The main advantage of trading using opposite ProStar Holdings and Dubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProStar Holdings position performs unexpectedly, Dubber 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 Dubber will offset losses from the drop in Dubber's long position.| ProStar Holdings vs. 01 Communique Laboratory | ProStar Holdings vs. LifeSpeak | ProStar Holdings vs. RESAAS Services | ProStar Holdings vs. RenoWorks Software |
| Dubber vs. Intouch Insight | Dubber vs. Advanced Health Intelligence | Dubber vs. Adcore Inc | Dubber 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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