Correlation Between Captivision Ordinary and Basanite

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

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

Diversification Opportunities for Captivision Ordinary and Basanite

0.07

Correlation Coefficient

Captivision Ordinary  Basanite

Significant diversification

The 3 months correlation between Captivision and Basanite is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Captivision Ordinary Shares and Basanite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basanite and Captivision Ordinary 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 Captivision Ordinary Shares are associated (or correlated) with Basanite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basanite has no effect on the direction of Captivision Ordinary i.e., Captivision Ordinary and Basanite go up and down completely randomly.

Pair Corralation between Captivision Ordinary and Basanite

Given the investment horizon of 90 days Captivision Ordinary Shares is expected to generate 1.3 times more return on investment than Basanite. However, Captivision Ordinary is 1.3 times more volatile than Basanite. It trades about 0.2 of its potential returns per unit of risk. Basanite is currently generating about 0.0 per unit of risk. If you would invest  50.00  in Captivision Ordinary Shares on May 2, 2025 and sell it today you would earn a total of  85.00  from holding Captivision Ordinary Shares or generate 170.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Captivision Ordinary Shares  vs.  Basanite

Captivision Ordinary

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Captivision Ordinary Shares are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Captivision Ordinary unveiled solid returns over the last few months and may actually be approaching a breakup point.

Basanite

Risk-Adjusted Performance

Very Weak

Over the last 90 days Basanite has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Basanite is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Captivision Ordinary and Basanite

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

The idea behind Captivision Ordinary Shares and Basanite 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.