Correlation Between BASE and CurrentC Power

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

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

Diversification Opportunities for BASE and CurrentC Power

0.04

Correlation Coefficient

BASE  CurrentC Power

Significant diversification

The 3 months correlation between BASE and CurrentC is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding BASE Inc and CurrentC Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CurrentC Power and BASE 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 BASE Inc are associated (or correlated) with CurrentC Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CurrentC Power has no effect on the direction of BASE i.e., BASE and CurrentC Power go up and down completely randomly.

Pair Corralation between BASE and CurrentC Power

Assuming the 90 days horizon BASE Inc is expected to under-perform the CurrentC Power. But the pink sheet apears to be less risky and, when comparing its historical volatility, BASE Inc is 23.51 times less risky than CurrentC Power. The pink sheet trades about -0.09 of its potential returns per unit of risk. The CurrentC Power is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  3.72  in CurrentC Power on May 11, 2025 and sell it today you would lose (2.93) from holding CurrentC Power or give up 78.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

BASE Inc  vs.  CurrentC Power

BASE Inc

Risk-Adjusted Performance

Weakest

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

CurrentC Power

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CurrentC Power are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting fundamental indicators, CurrentC Power showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BASE and CurrentC Power

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

The idea behind BASE Inc and CurrentC Power 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 Global Correlations module to find global opportunities by holding instruments from different markets.