Correlation Between Dubber and Where Food

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

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

Diversification Opportunities for Dubber and Where Food

0.13

Correlation Coefficient

Dubber  Where Food

Average diversification

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

Pair Corralation between Dubber and Where Food

Assuming the 90 days horizon Dubber Limited is expected to generate 24.33 times more return on investment than Where Food. However, Dubber is 24.33 times more volatile than Where Food Comes. It trades about 0.05 of its potential returns per unit of risk. Where Food Comes is currently generating about 0.01 per unit of risk. If you would invest  6.23  in Dubber Limited on October 5, 2024 and sell it today you would lose (3.73) from holding Dubber Limited or give up 59.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.2%
Values	Daily Returns

Dubber Limited  vs.  Where Food Comes

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, Dubber reported solid returns over the last few months and may actually be approaching a breakup point.

Where Food Comes

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Where Food Comes are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Where Food reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dubber and Where Food

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

The idea behind Dubber Limited and Where Food Comes 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.