Correlation Between Agent Information and BASE

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

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

Diversification Opportunities for Agent Information and BASE

-0.52

Correlation Coefficient

Agent Information  BASE

Excellent diversification

The 3 months correlation between Agent and BASE is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Agent Information Software and BASE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASE Inc and Agent Information 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 Agent Information Software 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 Agent Information i.e., Agent Information and BASE go up and down completely randomly.

Pair Corralation between Agent Information and BASE

Given the investment horizon of 90 days Agent Information Software is expected to generate 2.64 times more return on investment than BASE. However, Agent Information is 2.64 times more volatile than BASE Inc. It trades about 0.04 of its potential returns per unit of risk. BASE Inc is currently generating about 0.03 per unit of risk. If you would invest  138.00  in Agent Information Software on January 8, 2025 and sell it today you would lose (27.00) from holding Agent Information Software or give up 19.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	46.3%
Values	Daily Returns

Agent Information Software  vs.  BASE Inc

Agent Information

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agent Information Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

BASE Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BASE Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, BASE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agent Information and BASE

The main advantage of trading using opposite Agent Information and BASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agent Information 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 Agent Information Software 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.