Correlation Between Wirecard and BASE
Can any of the company-specific risk be diversified away by investing in both Wirecard 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 Wirecard and BASE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wirecard AG and BASE Inc, you can compare the effects of market volatilities on Wirecard 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 Wirecard with a short position of BASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wirecard and BASE.
Diversification Opportunities for Wirecard and BASE
Good diversification
The 3 months correlation between Wirecard and BASE is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Wirecard AG and BASE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASE Inc and Wirecard 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 Wirecard AG 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 Wirecard i.e., Wirecard and BASE go up and down completely randomly.
Pair Corralation between Wirecard 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 | 95.45% |
| Values | Daily Returns |
Wirecard AG vs. BASE Inc
Performance |
| Timeline |
| Wirecard AG |
| BASE Inc |
Wirecard and BASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wirecard and BASE
The main advantage of trading using opposite Wirecard and BASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wirecard 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.| Wirecard vs. NextPlat Corp | Wirecard vs. Liquid Avatar Technologies | Wirecard vs. Waldencast Acquisition Corp | Wirecard 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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