Correlation Between Bubblr and Wearable Health

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

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

Diversification Opportunities for Bubblr and Wearable Health

0.01

Correlation Coefficient

Bubblr  Wearable Health

Significant diversification

The 3 months correlation between Bubblr and Wearable is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bubblr Inc and Wearable Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wearable Health Solutions and Bubblr 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 Bubblr Inc are associated (or correlated) with Wearable Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wearable Health Solutions has no effect on the direction of Bubblr i.e., Bubblr and Wearable Health go up and down completely randomly.

Pair Corralation between Bubblr and Wearable Health

Given the investment horizon of 90 days Bubblr is expected to generate 5.21 times less return on investment than Wearable Health. But when comparing it to its historical volatility, Bubblr Inc is 6.12 times less risky than Wearable Health. It trades about 0.13 of its potential returns per unit of risk. Wearable Health Solutions is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Wearable Health Solutions on May 4, 2025 and sell it today you would earn a total of  0.00  from holding Wearable Health Solutions or generate 0.0% return on investment over 90 days.

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

Bubblr Inc  vs.  Wearable Health Solutions

Bubblr Inc

Risk-Adjusted Performance

OK

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

Wearable Health Solutions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wearable Health Solutions are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Wearable Health demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bubblr and Wearable Health

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

The idea behind Bubblr Inc and Wearable Health Solutions 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.