Correlation Between Dave Warrants and CompoSecure

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

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

Diversification Opportunities for Dave Warrants and CompoSecure

-0.55

Correlation Coefficient

Dave Warrants  CompoSecure

Excellent diversification

The 3 months correlation between Dave and CompoSecure is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dave Warrants and CompoSecure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompoSecure and Dave Warrants 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 Warrants are associated (or correlated) with CompoSecure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompoSecure has no effect on the direction of Dave Warrants i.e., Dave Warrants and CompoSecure go up and down completely randomly.

Pair Corralation between Dave Warrants and CompoSecure

Assuming the 90 days horizon Dave Warrants is expected to under-perform the CompoSecure. In addition to that, Dave Warrants is 1.22 times more volatile than CompoSecure. It trades about -0.03 of its total potential returns per unit of risk. CompoSecure is currently generating about 0.18 per unit of volatility. If you would invest  625.00  in CompoSecure on June 28, 2025 and sell it today you would earn a total of  560.00  from holding CompoSecure or generate 89.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.77%
Values	Daily Returns

Dave Warrants  vs.  CompoSecure

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 unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in October 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

CompoSecure

Risk-Adjusted Performance

Good

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

Pair Trading with Dave Warrants and CompoSecure

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

The idea behind Dave Warrants and CompoSecure 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.