Correlation Between Dubber and Duos Technologies

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

By analyzing existing cross correlation between Dubber Limited and Duos Technologies Group, you can compare the effects of market volatilities on Dubber and Duos Technologies 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 Duos Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dubber and Duos Technologies.

Diversification Opportunities for Dubber and Duos Technologies

0.13

Correlation Coefficient

Dubber  Duos Technologies

Average diversification

The 3 months correlation between Dubber and Duos is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dubber Limited and Duos Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duos Technologies 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 Duos Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duos Technologies has no effect on the direction of Dubber i.e., Dubber and Duos Technologies go up and down completely randomly.

Pair Corralation between Dubber and Duos Technologies

Assuming the 90 days horizon Dubber Limited is expected to under-perform the Duos Technologies. But the pink sheet apears to be less risky and, when comparing its historical volatility, Dubber Limited is 2.49 times less risky than Duos Technologies. The pink sheet trades about -0.21 of its potential returns per unit of risk. The Duos Technologies Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  457.00  in Duos Technologies Group on September 26, 2024 and sell it today you would earn a total of  88.00  from holding Duos Technologies Group or generate 19.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Dubber Limited  vs.  Duos Technologies Group

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.

Duos Technologies

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Duos Technologies Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Duos Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dubber and Duos Technologies

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

The idea behind Dubber Limited and Duos Technologies Group 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.