Correlation Between Waldencast Acquisition and Dubber
Can any of the company-specific risk be diversified away by investing in both Waldencast Acquisition 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 Waldencast Acquisition and Dubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waldencast Acquisition Corp and Dubber Limited, you can compare the effects of market volatilities on Waldencast Acquisition 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 Waldencast Acquisition with a short position of Dubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waldencast Acquisition and Dubber.
Diversification Opportunities for Waldencast Acquisition and Dubber
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Waldencast and Dubber is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Waldencast Acquisition Corp and Dubber Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dubber Limited and Waldencast Acquisition 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 Waldencast Acquisition Corp 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 Waldencast Acquisition i.e., Waldencast Acquisition and Dubber go up and down completely randomly.
Pair Corralation between Waldencast Acquisition and Dubber
Given the investment horizon of 90 days Waldencast Acquisition Corp is expected to generate 0.99 times more return on investment than Dubber. However, Waldencast Acquisition Corp is 1.01 times less risky than Dubber. It trades about 0.15 of its potential returns per unit of risk. Dubber Limited is currently generating about -0.21 per unit of risk. If you would invest 332.00 in Waldencast Acquisition Corp on September 23, 2024 and sell it today you would earn a total of 33.00 from holding Waldencast Acquisition Corp or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Waldencast Acquisition Corp vs. Dubber Limited
Performance |
| Timeline |
| Waldencast Acquisition |
| Dubber Limited |
Waldencast Acquisition and Dubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Waldencast Acquisition and Dubber
The main advantage of trading using opposite Waldencast Acquisition and Dubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waldencast Acquisition 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.| Waldencast Acquisition vs. Aquagold International | Waldencast Acquisition vs. Morningstar Unconstrained Allocation | Waldencast Acquisition vs. Thrivent High Yield | Waldencast Acquisition vs. Via Renewables |
| Dubber vs. NextPlat Corp | Dubber vs. Liquid Avatar Technologies | Dubber vs. Wirecard AG | Dubber 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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