Correlation Between Dubber and My Size

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

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

Diversification Opportunities for Dubber and My Size

0.0

Correlation Coefficient

Dubber  My Size

Pay attention - limited upside

The 3 months correlation between Dubber and MYSZ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dubber Limited and My Size in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Size 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 My Size. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Size has no effect on the direction of Dubber i.e., Dubber and My Size go up and down completely randomly.

Pair Corralation between Dubber and My Size

Assuming the 90 days horizon Dubber Limited is expected to generate 4.39 times more return on investment than My Size. However, Dubber is 4.39 times more volatile than My Size. It trades about 0.12 of its potential returns per unit of risk. My Size is currently generating about 0.15 per unit of risk. If you would invest  1.94  in Dubber Limited on September 29, 2024 and sell it today you would earn a total of  0.56  from holding Dubber Limited or generate 28.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.92%
Values	Daily Returns

Dubber Limited  vs.  My Size

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.

My Size

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in My Size are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, My Size showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dubber and My Size

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

The idea behind Dubber Limited and My Size 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.