Correlation Between Dream Office and Baselode Energy

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

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

Diversification Opportunities for Dream Office and Baselode Energy

-0.45

Correlation Coefficient

Dream Office  Baselode Energy

Very good diversification

The 3 months correlation between Dream and Baselode is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Dream Office Real and Baselode Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baselode Energy Corp and Dream Office 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 Dream Office Real are associated (or correlated) with Baselode Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baselode Energy Corp has no effect on the direction of Dream Office i.e., Dream Office and Baselode Energy go up and down completely randomly.

Pair Corralation between Dream Office and Baselode Energy

Assuming the 90 days trading horizon Dream Office Real is expected to generate 0.37 times more return on investment than Baselode Energy. However, Dream Office Real is 2.68 times less risky than Baselode Energy. It trades about 0.06 of its potential returns per unit of risk. Baselode Energy Corp is currently generating about 0.0 per unit of risk. If you would invest  1,576  in Dream Office Real on April 25, 2025 and sell it today you would earn a total of  120.00  from holding Dream Office Real or generate 7.61% return on investment over 90 days.

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

Dream Office Real  vs.  Baselode Energy Corp

Dream Office Real

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dream Office Real are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Dream Office may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Baselode Energy Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Baselode Energy Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Baselode Energy 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 Dream Office and Baselode Energy

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

The idea behind Dream Office Real and Baselode Energy 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.