Correlation Between Freight Technologies and Dubber

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

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

Diversification Opportunities for Freight Technologies and Dubber

-0.1

Correlation Coefficient

Freight Technologies  Dubber

Good diversification

The 3 months correlation between Freight and Dubber is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Freight Technologies and Dubber Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dubber Limited and Freight Technologies 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 Freight Technologies are associated (or correlated) with Dubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dubber Limited has no effect on the direction of Freight Technologies i.e., Freight Technologies and Dubber go up and down completely randomly.

Pair Corralation between Freight Technologies and Dubber

Given the investment horizon of 90 days Freight Technologies is expected to generate 1.58 times more return on investment than Dubber. However, Freight Technologies is 1.58 times more volatile than Dubber Limited. It trades about 0.35 of its potential returns per unit of risk. Dubber Limited is currently generating about -0.21 per unit of risk. If you would invest  136.00  in Freight Technologies on September 28, 2024 and sell it today you would earn a total of  58.00  from holding Freight Technologies or generate 42.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.91%
Values	Daily Returns

Freight Technologies  vs.  Dubber Limited

Freight Technologies

Risk-Adjusted Performance

2 of 100

Weak

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

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.

Pair Trading with Freight Technologies and Dubber

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

The idea behind Freight Technologies and Dubber 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.