Correlation Between Power Integrations and Dave

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

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

Diversification Opportunities for Power Integrations and Dave

0.13

Correlation Coefficient

Power Integrations  Dave

Average diversification

The 3 months correlation between Power and Dave is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Power Integrations and Dave Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dave Inc and Power Integrations 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 Power Integrations are associated (or correlated) with Dave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dave Inc has no effect on the direction of Power Integrations i.e., Power Integrations and Dave go up and down completely randomly.

Pair Corralation between Power Integrations and Dave

Given the investment horizon of 90 days Power Integrations is expected to under-perform the Dave. But the stock apears to be less risky and, when comparing its historical volatility, Power Integrations is 1.05 times less risky than Dave. The stock trades about -0.05 of its potential returns per unit of risk. The Dave Inc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  21,061  in Dave Inc on July 25, 2025 and sell it today you would earn a total of  3,035  from holding Dave Inc or generate 14.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Power Integrations  vs.  Dave Inc

Power Integrations

Risk-Adjusted Performance

Weakest

Over the last 90 days Power Integrations has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Dave Inc

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Dave Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Dave exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Power Integrations and Dave

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

The idea behind Power Integrations and Dave Inc 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .