Correlation Between Dave and Rego Payment

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

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

Diversification Opportunities for Dave and Rego Payment

-0.32

Correlation Coefficient

Dave  Rego Payment

Very good diversification

The 3 months correlation between Dave and Rego is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Dave Inc and Rego Payment Architectures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rego Payment Archite and Dave 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 Dave Inc are associated (or correlated) with Rego Payment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rego Payment Archite has no effect on the direction of Dave i.e., Dave and Rego Payment go up and down completely randomly.

Pair Corralation between Dave and Rego Payment

Given the investment horizon of 90 days Dave Inc is expected to generate 0.76 times more return on investment than Rego Payment. However, Dave Inc is 1.32 times less risky than Rego Payment. It trades about 0.21 of its potential returns per unit of risk. Rego Payment Architectures is currently generating about -0.08 per unit of risk. If you would invest  10,475  in Dave Inc on May 4, 2025 and sell it today you would earn a total of  12,798  from holding Dave Inc or generate 122.18% return on investment over 90 days.

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

Dave Inc  vs.  Rego Payment Architectures

Dave Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dave Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, Dave exhibited solid returns over the last few months and may actually be approaching a breakup point.

Rego Payment Archite

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rego Payment Architectures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Dave and Rego Payment

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

The idea behind Dave Inc and Rego Payment Architectures 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.