Correlation Between Dug Technology and CurveBeam

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

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

Diversification Opportunities for Dug Technology and CurveBeam

-0.55

Correlation Coefficient

Dug Technology  CurveBeam

Excellent diversification

The 3 months correlation between Dug and CurveBeam is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dug Technology and CurveBeam AI Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CurveBeam AI Limited and Dug Technology 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 Dug Technology are associated (or correlated) with CurveBeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CurveBeam AI Limited has no effect on the direction of Dug Technology i.e., Dug Technology and CurveBeam go up and down completely randomly.

Pair Corralation between Dug Technology and CurveBeam

Assuming the 90 days trading horizon Dug Technology is expected to generate 0.45 times more return on investment than CurveBeam. However, Dug Technology is 2.22 times less risky than CurveBeam. It trades about 0.16 of its potential returns per unit of risk. CurveBeam AI Limited is currently generating about 0.04 per unit of risk. If you would invest  133.00  in Dug Technology on October 27, 2024 and sell it today you would earn a total of  16.00  from holding Dug Technology or generate 12.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Dug Technology  vs.  CurveBeam AI Limited

Dug Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dug Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

CurveBeam AI Limited

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CurveBeam AI Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, CurveBeam unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dug Technology and CurveBeam

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

The idea behind Dug Technology and CurveBeam AI Limited 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.