Correlation Between EzFill Holdings and BASE

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

By analyzing existing cross correlation between EzFill Holdings and BASE Inc, you can compare the effects of market volatilities on EzFill Holdings and BASE 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 EzFill Holdings with a short position of BASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of EzFill Holdings and BASE.

Diversification Opportunities for EzFill Holdings and BASE

0.48

Correlation Coefficient

EzFill Holdings  BASE

Very weak diversification

The 3 months correlation between EzFill and BASE is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding EzFill Holdings and BASE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASE Inc and EzFill Holdings 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 EzFill Holdings are associated (or correlated) with BASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BASE Inc has no effect on the direction of EzFill Holdings i.e., EzFill Holdings and BASE go up and down completely randomly.

Pair Corralation between EzFill Holdings and BASE

Given the investment horizon of 90 days EzFill Holdings is expected to under-perform the BASE. In addition to that, EzFill Holdings is 1.01 times more volatile than BASE Inc. It trades about -0.06 of its total potential returns per unit of risk. BASE Inc is currently generating about -0.02 per unit of volatility. If you would invest  172.00  in BASE Inc on September 4, 2024 and sell it today you would lose (22.00) from holding BASE Inc or give up 12.79% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

EzFill Holdings  vs.  BASE Inc

EzFill Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EzFill Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

BASE Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BASE Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with EzFill Holdings and BASE

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

The idea behind EzFill Holdings and BASE Inc 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.