Correlation Between DubberLimited and CooTek Cayman

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

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

Diversification Opportunities for DubberLimited and CooTek Cayman

0.08

Correlation Coefficient

DubberLimited  CooTek Cayman

Significant diversification

The 3 months correlation between DubberLimited and CooTek is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dubber Limited and CooTek Cayman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CooTek Cayman and DubberLimited 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 CooTek Cayman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CooTek Cayman has no effect on the direction of DubberLimited i.e., DubberLimited and CooTek Cayman go up and down completely randomly.

Pair Corralation between DubberLimited and CooTek Cayman

If you would invest  6.23  in Dubber Limited on September 1, 2024 and sell it today you would lose (3.23) from holding Dubber Limited or give up 51.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	0.79%
Values	Daily Returns

Dubber Limited  vs.  CooTek Cayman

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 fragile basic indicators, DubberLimited reported solid returns over the last few months and may actually be approaching a breakup point.

CooTek Cayman

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CooTek Cayman has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, CooTek Cayman is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with DubberLimited and CooTek Cayman

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

The idea behind Dubber Limited and CooTek Cayman 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 Global Correlations module to find global opportunities by holding instruments from different markets.