Correlation Between Mitek Systems and Dave
Can any of the company-specific risk be diversified away by investing in both Mitek Systems and Dave 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 Mitek Systems and Dave into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitek Systems and Dave Inc, you can compare the effects of market volatilities on Mitek Systems and Dave 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 Mitek Systems with a short position of Dave. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitek Systems and Dave.
Diversification Opportunities for Mitek Systems and Dave
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitek and Dave is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mitek Systems and Dave Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dave Inc and Mitek Systems 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 Mitek Systems are associated (or correlated) with Dave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dave Inc has no effect on the direction of Mitek Systems i.e., Mitek Systems and Dave go up and down completely randomly.
Pair Corralation between Mitek Systems and Dave
Given the investment horizon of 90 days Mitek Systems is expected to under-perform the Dave. But the stock apears to be less risky and, when comparing its historical volatility, Mitek Systems is 2.36 times less risky than Dave. The stock trades about -0.01 of its potential returns per unit of risk. The Dave Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,198 in Dave Inc on November 3, 2024 and sell it today you would earn a total of 7,496 from holding Dave Inc or generate 341.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Mitek Systems vs. Dave Inc
Performance |
| Timeline |
| Mitek Systems |
| Dave Inc |
Mitek Systems and Dave Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitek Systems and Dave
The main advantage of trading using opposite Mitek Systems and Dave positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitek Systems position performs unexpectedly, Dave 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 will offset losses from the drop in Dave's long position.| Mitek Systems vs. Wag Group Co | Mitek Systems vs. OppFi Inc | Mitek Systems vs. Riskified | Mitek Systems vs. Domo Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |