Correlation Between Dave Warrants and Embark Technology

Can any of the company-specific risk be diversified away by investing in both Dave Warrants and Embark Technology 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 Dave Warrants and Embark Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dave Warrants and Embark Technology, you can compare the effects of market volatilities on Dave Warrants and Embark Technology 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 Dave Warrants with a short position of Embark Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Warrants and Embark Technology.

Diversification Opportunities for Dave Warrants and Embark Technology

0.0

Correlation Coefficient

Dave Warrants  Embark Technology

Pay attention - limited upside

The 3 months correlation between Dave and Embark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dave Warrants and Embark Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embark Technology and Dave Warrants 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 Dave Warrants are associated (or correlated) with Embark Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embark Technology has no effect on the direction of Dave Warrants i.e., Dave Warrants and Embark Technology go up and down completely randomly.

Pair Corralation between Dave Warrants and Embark Technology

If you would invest  18.00  in Dave Warrants on December 19, 2024 and sell it today you would earn a total of  0.00  from holding Dave Warrants or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Dave Warrants  vs.  Embark Technology

Dave Warrants

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dave Warrants are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical and fundamental indicators, Dave Warrants showed solid returns over the last few months and may actually be approaching a breakup point.

Embark Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Embark Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Embark Technology is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Dave Warrants and Embark Technology

The main advantage of trading using opposite Dave Warrants and Embark Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dave Warrants position performs unexpectedly, Embark Technology 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 Embark Technology will offset losses from the drop in Embark Technology's long position.

The idea behind Dave Warrants and Embark Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..