Correlation Between Dubber and Beamr Imaging

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

By analyzing existing cross correlation between Dubber Limited and Beamr Imaging Ltd, you can compare the effects of market volatilities on Dubber and Beamr Imaging 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 Dubber with a short position of Beamr Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dubber and Beamr Imaging.

Diversification Opportunities for Dubber and Beamr Imaging

0.0

Correlation Coefficient

Dubber  Beamr Imaging

Pay attention - limited upside

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

Pair Corralation between Dubber and Beamr Imaging

Assuming the 90 days horizon Dubber Limited is expected to under-perform the Beamr Imaging. But the pink sheet apears to be less risky and, when comparing its historical volatility, Dubber Limited is 2.14 times less risky than Beamr Imaging. The pink sheet trades about -0.21 of its potential returns per unit of risk. The Beamr Imaging Ltd is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  327.00  in Beamr Imaging Ltd on September 29, 2024 and sell it today you would earn a total of  80.00  from holding Beamr Imaging Ltd or generate 24.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.91%
Values	Daily Returns

Dubber Limited  vs.  Beamr Imaging Ltd

Dubber Limited

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dubber Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Dubber reported solid returns over the last few months and may actually be approaching a breakup point.

Beamr Imaging

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Beamr Imaging Ltd are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile primary indicators, Beamr Imaging reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dubber and Beamr Imaging

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

The idea behind Dubber Limited and Beamr Imaging Ltd 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.