Correlation Between TrustBIX and Dubber

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

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

Diversification Opportunities for TrustBIX and Dubber

-0.17

Correlation Coefficient

TrustBIX  Dubber

Good diversification

The 3 months correlation between TrustBIX and Dubber is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding TrustBIX and Dubber Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dubber Limited and TrustBIX 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 TrustBIX 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 TrustBIX i.e., TrustBIX and Dubber go up and down completely randomly.

Pair Corralation between TrustBIX and Dubber

Assuming the 90 days horizon TrustBIX is expected to under-perform the Dubber. But the pink sheet apears to be less risky and, when comparing its historical volatility, TrustBIX is 11.81 times less risky than Dubber. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Dubber Limited is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  2.50  in Dubber Limited on December 22, 2024 and sell it today you would earn a total of  1.87  from holding Dubber Limited or generate 74.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TrustBIX  vs.  Dubber Limited

TrustBIX

Risk-Adjusted Performance

Very Weak

Over the last 90 days TrustBIX has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Dubber Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dubber Limited are ranked lower than 11 (%) 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.

Pair Trading with TrustBIX and Dubber

The main advantage of trading using opposite TrustBIX and Dubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrustBIX 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 TrustBIX 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.

Check out your portfolio center.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.