Correlation Between Digimarc and Webull Corp

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

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

Diversification Opportunities for Digimarc and Webull Corp

-0.48

Correlation Coefficient

Digimarc  Webull Corp

Very good diversification

The 3 months correlation between Digimarc and Webull is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Digimarc and Webull Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webull Corp and Digimarc 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 Digimarc are associated (or correlated) with Webull Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webull Corp has no effect on the direction of Digimarc i.e., Digimarc and Webull Corp go up and down completely randomly.

Pair Corralation between Digimarc and Webull Corp

Given the investment horizon of 90 days Digimarc is expected to under-perform the Webull Corp. But the stock apears to be less risky and, when comparing its historical volatility, Digimarc is 1.51 times less risky than Webull Corp. The stock trades about -0.2 of its potential returns per unit of risk. The Webull Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,096  in Webull Corp on June 6, 2025 and sell it today you would earn a total of  205.00  from holding Webull Corp or generate 18.7% return on investment over 90 days.

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

Digimarc  vs.  Webull Corp

Digimarc

Risk-Adjusted Performance

Weakest

Over the last 90 days Digimarc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in October 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Webull Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Webull Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady essential indicators, Webull Corp disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Digimarc and Webull Corp

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

The idea behind Digimarc and Webull Corp 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.