Correlation Between CoreCard Corp and Dave Warrants

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

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

Diversification Opportunities for CoreCard Corp and Dave Warrants

0.41

Correlation Coefficient

CoreCard Corp  Dave Warrants

Very weak diversification

The 3 months correlation between CoreCard and Dave is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding CoreCard Corp and Dave Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dave Warrants and CoreCard Corp 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 CoreCard Corp are associated (or correlated) with Dave Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dave Warrants has no effect on the direction of CoreCard Corp i.e., CoreCard Corp and Dave Warrants go up and down completely randomly.

Pair Corralation between CoreCard Corp and Dave Warrants

Given the investment horizon of 90 days CoreCard Corp is expected to generate 0.25 times more return on investment than Dave Warrants. However, CoreCard Corp is 4.02 times less risky than Dave Warrants. It trades about 0.06 of its potential returns per unit of risk. Dave Warrants is currently generating about -0.12 per unit of risk. If you would invest  2,734  in CoreCard Corp on July 24, 2025 and sell it today you would earn a total of  60.00  from holding CoreCard Corp or generate 2.19% return on investment over 90 days.

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

CoreCard Corp  vs.  Dave Warrants

CoreCard Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CoreCard Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, CoreCard Corp is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Dave Warrants

Risk-Adjusted Performance

Weakest

Over the last 90 days Dave Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Dave Warrants is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with CoreCard Corp and Dave Warrants

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

The idea behind CoreCard Corp and Dave Warrants 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.